Question about income requirements.

[kerberosv2]

I am thinking about filing for Chap 7 after tax refund (currently unemployed) however, everyone on here is telling me not to bother until I am employed. My concern is that, I have been interviewed for a GOOD job that starts around $19/hr. If I get this job, will this put me over the income limit to file? I'd hate to stop paying bills right now and let it ruin my credit because I was going to file BK in a few months, if I end up not being able to!

Suggestions/comments?

Thanks

[justbroke]

I don't understand what you mean by "everyone on here is telling me not to bother until I am employed". I have not seen any post suggesting to get a job and then file Bankruptcy. I believe that some were telling you to file your income taxes, spend the money down (on cost of living, attorney) and then file. If you get a job, then so be it! You might still be under the median and could still qualify for a Chapter 7.

The best advice was already given. That includes consulting with some BK attorneys to see what your situation is. Also, a job is not a job unless and until you start working. A job offer is not a job.

I can't tell is $40K a year would be over the median income because I don't know your household information. In any event, the Median Income for Ohio for a family of 1 is $41,748. It's higher if you have a spouse ($51,839) and still higher with children (with a family of 4 at $72,827).

[bcohen]

The only benefit of waiting to file is that if you incur additional debts, such as an uninsured medical emergency, you can discharge them when you file. For that reason, I normally advise people who are walking away from a house/condo in a community with a HOA to delay filing until after foreclosure, so they can discharge any association dues/fees/penalties. Likewise, I would recommend waiting to file if you have a medical condition, or have minor children living with you, as they could need medical care that you can't afford. If you are young and healthy, have no dependants, and/or have good health insurance coverage, then it's probably best to file now while you're unemployed.

If you file when you're poor, that means that you will lose fewer (or no) assets in the bankruptcy, and you'll sail through the means test without any problem. You can shed your debts, and then when life improves, the money is yours to keep.

If you wait until you get a job or inherit money, then you will surely lose a significant amount of money in the bankruptcy (unless your state has generous exemptions) and you may be forced into a Chapter 13. You could find yourself wasting your hard-earned money going forward, paying old debts, with zero benefit to yourself.

I am in the same situation (unemployed, poor), and I am currently a full-time student. After I lost my job in the economic collapse, I decided to go to college, and I expect to graduate in December of 2013. When I lost my job, I "walked away" from thousands of dollars of debt, which has now ballooned to more than $40,000. I was planning to file for bankruptcy immediately before I graduate, but due to being sued, I am now planning to file as soon as I receive notice of a judgment.

The point I am making is that with the laws as they are now, and with the trustees greedier than ever (especially if you live in a state with stingy exemptions) you need to file when you are as poor as possible, to lose as little as possible.

[Pjmax]

Good jobs are not that easy to find these days. I would take the job, then deal with the next step.