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    In CA, important question about filing then income increases almost immediately after

    Okay, so I plan to file in late January-ish.
    I have a great job offer and they want me to start early February-ish.
    My income will skyrocket and this would obviously happen before any discharge or even a meeting would take place.

    How would this affect the filing?
    Should I not take the job until.....x day?

    Unfortunately my debt load is so large that my BK definitely takes precedence over taking said job.

    #2
    Hi AllMyFault,

    Sounds like you are the perfect candidate for a Ch 13....

    Tom in Colo
    Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

    Comment


      #3
      Originally posted by tcreegan View Post
      Hi AllMyFault,

      Sounds like you are the perfect candidate for a Ch 13....

      Tom in Colo
      It would be a horrible 'business' decision for me to take the job in lieu of qualifying for and filing a 7..so that won't happen.
      I guess my question made clearer is:
      I file on January 1, 2011, I know the court looks back at financial history leading up to the filing, but do they look forward from the date of filing?
      How long after filing can I begin to make money outside of the Chapter 7 income guidelines?

      Comment


        #4
        Originally posted by AllMyFault View Post
        It would be a horrible 'business' decision for me to take the job in lieu of qualifying for and filing a 7..so that won't happen.
        It would be a horrible business decision to turn down a great job that would cause your income to skyrocket in order to avoid a Chap 13. You need to look at the long term, not just the short term.

        I file on January 1, 2011, I know the court looks back at financial history leading up to the filing, but do they look forward from the date of filing?
        How long after filing can I begin to make money outside of the Chapter 7 income guidelines?
        Your Schedules I and J look forward. Even if you pass the means test, the trustee could object to a Chap 7 based on totality of circumstances. You should talk to an experienced bankruptcy attorney with knowledge of the case law in your district to find out if the trustee's objection would likely succeed.
        LadyInTheRed is in the black!
        Filed Chap 13 April 2010. Discharged May 2015.
        $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

        Comment


          #5
          Originally posted by LadyInTheRed View Post
          It would be a horrible business decision to turn down a great job that would cause your income to skyrocket in order to avoid a Chap 13. You need to look at the long term, not just the short term.


          Your Schedules I and J look forward. Even if you pass the means test, the trustee could object to a Chap 7 based on totality of circumstances. You should talk to an experienced bankruptcy attorney with knowledge of the case law in your district to find out if the trustee's objection would likely succeed.
          Thanks for that..
          Does anyone know how far ahead they would typically look?
          As I said, I wouldn't do anything that would or could jeopardize the success of a Chapter 7, I'm just trying to find out how long I should wait AFTER FILING to start making serious money?

          Comment


            #6
            Hi again AllMyFault,

            As I said, I wouldn't do anything that would or could jeopardize the success of a Chapter 7, I'm just trying to find out how long I should wait AFTER FILING to start making serious money?

            ....ouch, this is fraud....on your BK forms a question will be 'are there any anticipated changes in income' in the next 12 months. And you get to swear under oath 'is everything on these forms correct'

            The old saying 'honesty is the best policy' applies well in BK....

            Tom in Colo
            Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

            Comment


              #7
              I agree with Tom. from everything I've read and heard if you KNOW you have the job,you have to state it. If you were offered a job after your 341 and you didn't know about it at the time of your 341 from what I have read you're ok. Gray area exists in the time between filing and 341. But since you know now unless an attorney advises you otherwise I think you have to disclose.

              Comment


                #8
                Why not file now instead? Your 341 will most likely be held in Dec or Jan....
                Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
                0% payback to unsecured creditors, 56 payments down, 4 to go....

                Comment


                  #9
                  I don't think filing now solves the problem. If you know for sure you have a new job or will have then I believe you have to disclose it. See Tom's post above for the exact wording of "next twelve months"

                  Comment


                    #10
                    Originally posted by tcreegan View Post
                    Hi again AllMyFault,

                    As I said, I wouldn't do anything that would or could jeopardize the success of a Chapter 7, I'm just trying to find out how long I should wait AFTER FILING to start making serious money?

                    ....ouch, this is fraud....on your BK forms a question will be 'are there any anticipated changes in income' in the next 12 months. And you get to swear under oath 'is everything on these forms correct'

                    The old saying 'honesty is the best policy' applies well in BK....

                    Tom in Colo
                    Thank you guys for the honest and probably sound advice...however, in my eyes nothing about BK is 'sound' and I'll bet few are completely 'honest' and my filing will be no exception. I'm no Sunday school choir boy if you know what I mean and right now my interest lies in doing whats best for myself and my family...PERIOD
                    For the record, I'm that guy that will ask his attorney; "How do I hide my asset's?
                    Just trying to be honest here.

                    Comment


                      #11
                      Originally posted by momofthree View Post
                      Why not file now instead? Your 341 will most likely be held in Dec or Jan....
                      Two reasons:
                      I'm waiting for some 'changes' I made a while back to season a little longer
                      I need to move cash out of a business before filing. (Yes, I know...it's being withdrawn and or used for legitimate business expenses)

                      Comment


                        #12
                        however, in my eyes nothing about BK is 'sound' and I'll bet few are completely 'honest'

                        You would be mistaken around here, most of us are rigorously honest about it. That said, there are perfectly legal ways to 'pre-plan' for a BK, and doing what is best for your long-term financial interest is the whole point of filing. For most of us, events out of our control made a BK a perfectly 'sound' decision.

                        Good luck w/ your situation, hope it works out for you,

                        Tom in Colo
                        Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

                        Comment


                          #13
                          Originally posted by AllMyFault View Post
                          Thank you guys for the honest and probably sound advice...however, in my eyes nothing about BK is 'sound' and I'll bet few are completely 'honest' and my filing will be no exception. I'm no Sunday school choir boy if you know what I mean and right now my interest lies in doing whats best for myself and my family...PERIOD
                          For the record, I'm that guy that will ask his attorney; "How do I hide my asset's?
                          Just trying to be honest here.
                          You aren't likely to get people to post info in the forums to help you figure out how to be anything other than honest.

                          It is unethical for an attorney to tell you how to hide assets. If an attorney will disregard ethics to help you, how do you know he won't disregard ethics in a way that will harm you? Are you willing to trust an attorney who does not take ethics rules seriously?

                          Before you are anything other than honest in your BK filing, think long and hard whether it's worth having your case dismissed and all of your debts becoming non-dischargeable, not to mention a fine of up to $250k and/or 5 years in prison if you are convicted of fraud.
                          LadyInTheRed is in the black!
                          Filed Chap 13 April 2010. Discharged May 2015.
                          $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                          Comment

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