Can your case be reopened after discharge?

[kcfaninin]

Hi,
Once a Chapter 7 is discharged , can the case be reopened if the trustee finds out your wages have increased? Or are we safe after our case is actually closed?

Example: If we qualify for a Chapter 7 due to our income, but 6 months down the road after filing, our income increases therefore giving us a positive DMI, can our case be reopened and then be thrown into a Chapter 13?

[AngelinaCatHub]

Yes and no. Your case can be reopened by things like fraud, or your wish to bring into the case some sort of closing to an Adversary Procedure or that type of thing.

As to the no part, once discharged, you are through and need not worry if you win the lottery. You will not be bothered again.

Have a Merry Christmas. 'Hub

[frogger]

Hi,

Example: If we qualify for a Chapter 7 due to our income, but 6 months down the road after filing, our income increases therefore giving us a positive DMI, can our case be reopened and then be thrown into a Chapter 13?

No.

However, if you have an inheritance within 6 months, or if there was fraud, that could be a different story.

[dspii]

It is a snapshot of your finances the day you file, any future income except for inheritance and other less common income is yours. C7 they are looking at 6 months average income prior to filing..not after. They will only reopen your case for fraud, abuse, hidden assets and the such. If you are post discharge, congrats and good luck on your fresh start.

[kcfaninin]

We are not post discharge. Planning to file January 4th, but I am quitting my part time job due to health reasons and other issues at home. Without my second job, we qualify for a Chapter 7. But, 6 months to a year from now I would like to pick up some more hours in order to start saving some money and have a few extras we couldn't afford before.

We were worried if the trustee finds out I went back to work say, 5-8 months after our case was closed, could they reopen it and throw us into a Chapter 13.

No other fraud going on except quitting my part time job.

[HakunaMatata]

Quitting a job for health reasons isn't fraud. It's smart, healthy living! I wouldn't worry.

[mtndewdrinker]

Be prepared for the case to be noted as "presumption of abuse" though with the job status change. My wife quit working for similar reasons and we got marked as presumption. Which in and of itself is not bad I guess. The downside for us is that it brought our case to attention and was dismissed for other reasons. We are filing again now that enough time has passed

[HakunaMatata]

Be prepared for the case to be noted as "presumption of abuse" though with the job status change. My wife quit working for similar reasons and we got marked as presumption. Which in and of itself is not bad I guess. The downside for us is that it brought our case to attention and was dismissed for other reasons. We are filing again now that enough time has passed

Did your wife quit a second, part-time job? Quitting a second job won't alter the OP's employment status.

[kcfaninin]

I have to get a letter from my doctor stating it is in my best interest due to health reasons to quit. (He has been on me for the last year about decreasing my hours. I'm a nurse and work 4 -5 12hr night shifts per wk)

Also, attorney said that currently we fail the means test with the 6 month look back, but will explain to the Trustee that I was forced to quit d/t health reasons upon my physician's advise. Said it will be considered a special circumstance in which the Trustee should provide an exception even though we currently fail the means test.

Does this sound right? Will any red flags be raised? We could wait out the 6 months with no income from the second job, but she said we could file now with the documentation from my physician.

[StartingOver08]

JMO, I think it would benefit you to wait the six months until the xtra income drops off.

[dakota112]

Where on the filing schedules is their a question that you would answer that says if you were fired or quit your job that would letthe trustee know your situation unlesshe asked you at the 341 meeting face to face? My income went way down after I lost 3 jobs in a period of one year but how does the trustee know this?