Want to file ch 7 before new job

[qsr]

I'm unemployed and looking for a new job. I have a couple of possibilities, and if I do get a job offer I'd like to file Chapter 7 before taking the job. Will I run into trouble in my 341 meeting if I am making a decent income at that stage.

I would probably not pass the means test at that point. I just don't want to be buried by a Ch 13 when the employment market is so volatile. In my industry layoffs are very common and no job is really "secure." I don't know if this is a good enough excuse to avoid a problem with the trustee if they ask about future income.

[mtbc]

If you've accepted a job offer you should certainly be reporting the income on Schedule I. And then you'll need your Schedule J DMI to be small enough.

[qsr]

eh huh.. sounds like I better file before I get a job offer, but I'm guessing that will show up on a credit report or background check right away? I'm starting to get a little mad about the 2005 BK Act. It puts people in really uncomfortable spots.

[Flamingo]

eh huh.. sounds like I better file before I get a job offer, but I'm guessing that will show up on a credit report or background check right away? I'm starting to get a little mad about the 2005 BK Act. It puts people in really uncomfortable spots.

If you are late or have other bad credit issues on your account all that will also show up on your credit reports and could be an issue prior to filing if any position you apply for takes bad credit and/or BK into consideration during the hiring process. If you file, it most cases it shows up by the next day on credit reports with at least one creditor and yes a BK on your credit reports can have a major impact on getting a job. Also, if you don't get the job, realize that while BK eliminates your debt, it will not eliminate your unemployment or other cash flow issues. The New BK law that took effect in 10/05 basically made more people who could afford to pay back their debt pay it back; forcing more people into Chapter 13s and harder to file Chapter 7's.

[redhunter]

eh huh.. sounds like I better file before I get a job offer . . .

Will it be an enforceable employment contract or just an offer? I just got an offer and accepted it, but won't be filing ch7 for another 2 weeks and about a week before I plan to start work. However, my job offer was not contersigned by my employer (and won't be), it specifically indicated that it was not an employment contract or a guarantee for work, and that the employer is not liable if it doesn't actually give me a job. With this type of language in my job offer and in this economy, I'm not including any potential wages on Schedule I. I will only know that I have a new job and potential future income when I start working there and am receiving a pay check from them.

[jribe]

if you file BK and then accept a job- you will have to report that you are now working at your 341; and the wages will be considered. The trustee can always object to the filing; and if the income pushes you into a 13- it's that, or not filing at all.

[mtbc]

If you take an offer after the 341 are you now in safe territory (from a 7 -> 13 point of view), or is it better not to look too hard until after discharge or even after the case closes? I've wondered what changes of circumstances after the 341 but while the case is still ongoing the debtor has a duty to disclose.

[dakota112]

The way I see it is like this. You are filing bankruptcy because you are now broke and even with or without your recent job you ended up on your back. No new job or increase in income in the current and probably future environment of the USA is guaranteed to be permanent and Trustees need to be made to understand this. My income will go up after I file but it will not erase the negative J number of $5,600 I'm at right now. Don't forget as your income goes up, so do the taxes you pay and the rate at which you pay. So if they give me a hassle, I'll tell my atty I want to go before the judge and present my case. I don't feel americans should live in fear. This is not NAZI Germany.