Job After Filing but before 341 Meeting?

[Idjut]

Filing Chapter 7 middle of next week. We were supposed to do a Chapter 13, but I unexpectedly lost my job a couple months ago. We were above median income, but with the lost wages we are negative DMI approximate $1,800 so we passed the means test. I now have an opportunity for a part-time job. I will be making about 1/3 of my prior salary. My question is if I become employed after we file, but before the 341 meeting, could the Trustee dismiss our case and force us into a Chapter 13? I really want this job, but I don't want to do anything to jeopardize our Chapter 7 eligibility. I plan to ask our attorney about this when we sign the papers on Monday, but wanted to get some input beforehand. Thanks!

[ccmisery]

I asked a similar question and I believe your status during filing stands as it is, I have yet to hear anything regarding a push to convert to a 13 and my Discharge date is less than a month away but I am not overly confident until after that date. My 341 was over a month ago, I do have some real property that I may be losing in the process but I have heard nothing on whats going on from my Lawyer or Trustee, only thing is my car loan reaffirmation.

I had two job losses in a year and a major reduction in income in the process, was originally planned a 13 and lost my job and filed as a 7, I am too concerned about being asked to convert to a 13, because I am barely scraping by as it is.

[Pizza]

Chapter 7 is a snapshot of your situation when you file.

However, there is the possibility that starting a job just after filing could raise suspicion that you wanted to game the system. You may or may not be asked if your circumstances have changed since your filing. This would be a very good question for your attorney, as he or she would be familiar with such cases in your district.

The trustee at my 341 meeting never asked anything to that effect.

[AngelinaCat]

Go for your job, and the very best of wishes on getting it go with you from this 'Cat.

In this day and time, you cannot afford to turn any job down if you have the reasonable expectation of getting it.

Should the question arise at your 341, "has anything changed since you filed?" Answer the question truthfully, and add that the position pays far less than your previous position, and you understand that you are on a 6 month probationary period (standard practice with most places) before your position becomes permanent.

I think you will do fine. Good luck!

[Idjut]

Thanks for the replies. No, I definitely am not trying to game the system. The job loss was very unexpected, and I'm just thankful it happened when it did. Another week later and we probably would have filed for our Chapter 13 which would have really complicated things.

The job I am interested in just came up in the last few days. It is through a temporary placement agency and is part-time and pays less than 1/2 per hour what I made before. I don't even know how many hours I would be working per week if I do get it. Thankfully, my husband still has his job. This part-time job happens to be in the same field I was working in before, so I'm hoping it will be a foot in the door and lead to better pay and full-time status.

We sign our papers tomorrow, and our case will be filed on Tuesday. I'll let you know what the attorney says. I just hate all the unknowns and worrying. Will be so glad when this is behind us.

[Idjut]

Well, signed and filed. Now we wait for our 341 in September.

As for the employment question...like everything else in bankruptcy, it seems to be a gray area based on each individual case. In our particular case, since we were above median, and my husband still makes a nice salary on his own, if I become employed, even part-time, it COULD force us into a Chapter 13. When we weighted it out, it's just not worth getting stuck in a five year plan over a part-time job, so we will wait. Our attorney just couldn't predict what the trustee would do since our case is so close.

[AngelinaCat]

It actually turned out to be a blessing for us, when we had to file the CH7 instead of a CH13, because of my job loss. Though ours was a complicated Asset case, we were very much relieved when we were Discharged, and then finally Closed.

Do you qualify for Unemployment Compensation?

[Idjut]

No, not eligible. Which is a good thing too, because our state includes unemployment compensation as income, which, personally, I think is ridiculous, since it's a short-term thing with no guarantees you will gain employment when it expires. If I was receiving it, we would be in a Chapter 13.

We've gotten used to living very lean over the past couple months. We can stick it out another 60 days or so, then after our 341, I will hit the job search hard. It has definitely taught us we can live without the plastic.

[LadyInTheRed]

Well, signed and filed. Now we wait for our 341 in September.

As for the employment question...like everything else in bankruptcy, it seems to be a gray area based on each individual case. In our particular case, since we were above median, and my husband still makes a nice salary on his own, if I become employed, even part-time, it COULD force us into a Chapter 13. When we weighted it out, it's just not worth getting stuck in a five year plan over a part-time job, so we will wait. Our attorney just couldn't predict what the trustee would do since our case is so close.

If it weren't too late, I'd tell you to talk to another attorney. Your BK is a snap shot on the day you file. The trustee can complain all he or she wants, but if all you have on the date you file is an offer by an agency to send you out on an interview for a job you may or may not get, even if you later get that job, it shouldn't affect your eligibility for a Chap 7 discharge. If the trustee objects to a discharge based only on a job the debtor had no guarantee of having at the time the BK is filed, the debtor's attorney should fight the objection and let the judge decide. The fear that the trustee may raise an unsubstantiated objection to your discharge is a terrible reason to turn down an opportunity for a job.