what happens to wages?

[reneeka]

Hi,
I'm still employed and earning income. So what happens to the money from my paychecks once I file for bankruptcy and before discharge? Can I keep any of it? Do I have to pay my mortgage if I don't want to keep the house? Can I keep that money too? I'm in Maryland.

[StartingOver08]

If you are filing a Ch 7, the money from your paycheck after filing belongs to you.

You pay the things you are keeping, for example, cell phone service, electricity etc. If you are surrendering your home, you do not pay the mortgage. The lender will foreclose on your home because that is what the lender has to do to get the collateral - but you will not be responsible for any deficiency as your personal liablity for the mortgage will be discharged once you are successfully discharged from the Ch 7. You can keep all the money that is not used for expenses! That is why you filed, so you can keep more than you spend.

[mtbc]

Perhaps try not to have a big rise in pay during the process, though, especially before the 341 in a way that might be an expectation of higher income in the future that suggests a need for amending schedule I. I don't know if trustees ever ask, or if it makes any difference, but personally I'm glad that my next paycheck after filing but weeks before my 341 is right in line with what I put on schedule I. (Okay, I'm very cautious!)

[DebtHater]

It's good that you are still employed and receiving a paycheck. If you weren't a BK would be the least of your problems. Even though you're receiving an income as long as there are no red flags raised as long as your don't have a large net income. For example if you make $2,000 a month and your living expenses are $1,500... then your net income is the $500 difference. When my attorney prepared my schedule J, it shows I have a monthly net of 4 cents.

[Bell30656]

They have to still expect you to buy food, shelter, etc. Otherwise we'd all be in the poorhouse while we waited out the 341, etc. Work hard and prosper just make sure any raises or bonuses of substantial $$$$ come after the 341.