Ok, so, I get an email from my attorney

[LizardTail]

This morning at work at 9:30, I got an email from my BK atty stating I was above the median for a Ch. 7. Said somethink like the cut off was $38K and I was making $49K and he asked for any medical expenses, co-pays, etc. that he could work into it in the "next few business days." I used to make $55K but took a pay cut back in August since the firm was doing poorly.

Fast forward to 3:30 today, I got laid off. So my income is now -0-. I have applied online for unemployment, ... but wouldn't this make my situation a Chapter 7 now?

I had been with that law firm for 3 years and it is faltering and partners are leaving right and left with their associates and staff. Long story, but the firm is going D O W N.

But back to me, does this insure a Chapter 7 now?

[AngelinaCatHub]

Well, I would certainly think so. Yes. If your Law Firm were so good, they would have gotten a certification for bk in this day and time. For what you know, you could free lance as a paralegal. 'hub

[AngelinaCat]

When I lost my FT job, it certainly made our borderline Ch13 case a Ch7.

[AngelinaCatHub]

When I lost my FT job, it certainly made our borderline Ch13 case a Ch7.

Why are you following me? 'Hub

(Stalkers are such a bore)

[momtoroxy]

My husband was laid off during the process of getting our things together to file. We were a very borderline CH 7. But, what our attorney told us is that even though unemployed, they still look at the past 6 months income. So, he was laid off in August, and we waited to file in October to let one month of pay fall off. We had a successful 7 and were discharged a few weeks ago.

[OhioFiler]

Now that you are laid off I would put the bankruptcy on hold until you secure new employment. There is no reason I can think of that demands you file sooner rather than later unless you have outstanding judgments.

[StartingOver08]

Now that you are laid off I would put the bankruptcy on hold until you secure new employment. There is no reason I can think of that demands you file sooner rather than later unless you have outstanding judgments.

+1 Excellent advice.

[aces67]

You will probably have to wait a few months b/c the 6 month look back right now would still show you're above median.

[ApresMoi]

Now that you are laid off I would put the bankruptcy on hold until you secure new employment. There is no reason I can think of that demands you file sooner rather than later unless you have outstanding judgments.

Why do you suggest this? Finding a new job first? Thanks.

[OhioFiler]

Why do you suggest this? Finding a new job first? Thanks.

You must have a plan for living post-bankruptcy. Relying on unemployment insurance isn't a real healthy plan.

[StartingOver08]

Your BK gets rid of debt, that's all.

You still need to have a reliable, sustainable income to create your new budget and not incur new debt. If you end up going for several months without income it will make filing a Ch 7 that much easier for you - but don't file until you actually have a job.

[BCA2009]

So you guys are saying you wouldn't qualify for Chap 7 if you are unemployed? That makes no sense. I'm not saying you are wrong, just that it makes no sense. You would have no DMI.

I would agree that you couldn't file Chap 13. Can you provide more insight as to why the BK court would not discharge an unemployed person in a Chap 7.

What if she ends up getting a job making just above the median again?

[LizardTail]

Thanks for all the replies! I have strong confidence I will be employed sooner rather than later, but I do want to take a little time off. However, once I am employed again, I will not be making what I had been making. I don't plan on working for attorneys ANY MORE. Have done that way too long and it's not worth the health risk! I'll probably get into something around the $40K area. Since being let go yesterday, I have not come up with a revised budget, but without the huge credit card payments, I feel confident I can live on a smaller salary, and have a better quality of life.

My BK attorney has not responded to my news of not having a job anymore.

Thanks all!

[OhioFiler]

So you guys are saying you wouldn't qualify for Chap 7 if you are unemployed? That makes no sense. I'm not saying you are wrong, just that it makes no sense. You would have no DMI.

I would agree that you couldn't file Chap 13. Can provide more insight as to why the BK court would not discharge an unemployed person in a Chap 7.

What is she ends up getting a job making just above the median again?

No one said you don't qualify for a C7 if you are unemployed.

[HakunaMatata]

So you guys are saying you wouldn't qualify for Chap 7 if you are unemployed? That makes no sense. I'm not saying you are wrong, just that it makes no sense. You would have no DMI.

I would agree that you couldn't file Chap 13. Can provide more insight as to why the BK court would not discharge an unemployed person in a Chap 7.

What is she ends up getting a job making just above the median again?

You can file and be discharged if you're unemployed. However, being debt-free without a sustainable income and with post-BK bills is challenging for most.

The six month look back becomes significant in our OP's situation. The OP was initially over the median. Immediate unemployment doesn't grant the OP C7 status. If the OP doesn't receive income (or only receives unemployment insurance) and time passes, the OP's six month look back will reduce.