I just lost my job and my attorney recommended that we convert our Chapter 13 to a Chapter 7 at our meeting this morning. While losing my job isn't ideal my mom is sick so this will give me some time to help take care of her. Once she is stabalized, I plan to start looking for work. I ask my attorney what happens if I get a job shortly after discharge and he said that while it isn't common the US trustee has the authority to audit your case up to 1 year after you file. He suggested that I may not want to become employeed until after that 1 year mark. Has anyone else ever heard of this? What are the chances that we would get audited by the UST after discharge?
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That left me shaking my head. Say what?Originally posted by BrokeinCA View Post
No, I have never heard of such a thing. I can't believe an actually attorney said such a thing (oh, wait. I can
)
You odds of getting audited by the US Trustee are the same as everyone's: 1/250. The only exception to that is suspect fraud and getting a job after discharge is no fraudulent unless you knew about it before hand.So the poor debtor, seeing naught around him
Yet feels the narrow limits that impound him
Grieves at his debt and studies to evade it
And finds at last he might as well have paid it. -
Your attorney is smoking crack! If he told you that, you need a new attorney. You can get an job anytime after discharge and it won't affect you BK.Originally posted by BrokeinCA View PostWife Laid off - 11/16/2009 Missed First Payments - 12/5/2009
Filed Chap 7 - 12/31/2009
341 - 2/12/2010
Discharged - 4/19/2010
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The only time getting a job might cause the UST to reopen your case is if your new job is for a massively larger amount of money than you made in your six month look back period, you take the job right after discharge (like the next day or so) and somebody turns you in to the UST and tells them that you knew about the job beforehand.
The likelihood of this happening is very very very slim, and even then, it would be difficult for the UST to prove fraud.
I am not sure why your attorney is being so paranoid.
You can't take a picture of this. It's already gone. ~~Nate, Six Feet UnderComment
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My attorney has made some significant mistakes along the way in our Chapter 13 so I'm guessing he is giving us worst case senario.Comment
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A year?? That's insane!
Unless you're dangerously close to the median without a job (however that happens), there is no rationale for being told not to work after the discharge. You should come out ahead, and become employed, with your fresh start!Filed Joint, No Asset, > $100,000 Unsecured Ch.7 6/7/13 ~~ 341 Meeting 7/15/13 ~~ Discharged 9/16/13 !!Comment
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That's just for the random audits. Your odds of getting audited by the UST with their discretionary audits go up as the amount you're seeking to discharge goes up, or if you are way above median, or anything else they think needs a further look. They are not just interested in fraud per se, but in putting people into ch13 if they think there's money to payOriginally posted by Dst1 View PostThat left me shaking my head. Say what?
No, I have never heard of such a thing. I can't believe an actually attorney said such a thing (oh, wait. I can)
You odds of getting audited by the US Trustee are the same as everyone's: 1/250. The only exception to that is suspect fraud and getting a job after discharge is no fraudulent unless you knew about it before hand.
Can't see why they'd do it after discharge thoughComment
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I've never heard of this before. Screw the 2005 BK act. I've heard before that as long as you get through your 341 and you don't have a big increase in wages, you should be okay. I've been suffering from unemployment for a year an half and there's a threat they could come back after me if I get a job! What kind of a screwed up system is this?
Also does this mean I won't be able to file a Ch 13 after I'm discharged if I want to consolidate my secured debts?Comment
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