New employment just after filing...

[CPO]

Superb forum here. Full of outstand info. This site is much appreciated.

Situation: Single person is currently unemployed, has substancial (25K)unsecured debt, collects a retired military pension and disability that barely pays only the mortgage, has not paid on CC's + for a few months, actively seeks work but has remained unemployed long enough to earn under the state median income, files Chapter 7.

Soon (a couple of weeks) after filing finds work.

He's so far behind, that he prefers the Chapter 7 goes on through.

What, if any, effect does this have on the Chapter 7 case?

Thanks in advance.

[brainless twit]

Let me state first that I am NOT an attorney and I can only speak from experience.

My husband and I are filing on Friday, and I have been unemployed but seeking work. I have no job interviews/offers of any kind, but I did ask our attorney how long I would need to wait before interviewing. He told me that it's safe to look after we've filed - I have no way to know what's going to happen in the future. It would be one thing if I knew I had a job and I was filing prior to my start date, but it's different because I have nothing lined up. However, it doesn't make sense to punish me for trying to increase our income, because even with the BK7 we're still broke!

If I were you, I would ask your attorney to be sure. The information I got should be true for all states, but don't take my word for it.

[CPO]

Thanks for your quick response. My concern is that the court simply turns around and pushes you into a chapter 13 or drops your case completely because you now have income and can just struggle along in your new job with your old debts.

I don't know who's side they are on.

[SinkingFast]

Same here. Not an attny.

But I'd strongly suggest you not seek or take active employment until after you've had your 341 Meeting. You'll be asked at the 341 if you've had any changes in your financial circumstance since filing. During the 341, you are under Oath and your statements must be truthful.

If you aren't looking, there's no prospect for any significant change in your future. If you have a job lined up, or start working a job you did not have at the time of filing, and you lie at the 341, you'd be committing perjury in a Federal Court.

[razorguns]

wait til after 341. or trustee could tell u to wait and see how your finances are in 6 months.

r

[anonymuse]

Same here. Not an attny.

But I'd strongly suggest you not seek or take active employment until after you've had your 341 Meeting. You'll be asked at the 341 if you've had any changes in your financial circumstance since filing. During the 341, you are under Oath and your statements must be truthful.

If you aren't looking, there's no prospect for any significant change in your future. If you have a job lined up, or start working a job you did not have at the time of filing, and you lie at the 341, you'd be committing perjury in a Federal Court.

Not an attorney, but strongly concur! And if something coming out of the 341 isn't settled, I'd wait until after that is cleared up.

[pv34pv3p]

Chief,

Here's the best info I've found concerning military retirement pay exemption.

http://www.qcbankruptcy.com/2005BankruptcyOutline.html

Since your income is a snapshot of the last 6 months, I don't believe you'll have a problem as long as your under the median.

Hope this helps.

pv34pv3p

[CPO]

Thanks everyone for the great advice and info....and pv34pv34p, that's mighty astute of you and I really appreciate the link...

It was spooky for a second... I thought you might be my neighbor or something. Most don't catch the military acronym stuff.

Thanks again...

[jagjane]

Bankruptcy relating to new work/income

My niece has $30k of credit card debt maybe more now (age 24) she has not paid ANYONE in over 2 years due to not working, health problems, no work no car etc. She wrecked her car and her mom took all her insur. money so she went deeper in a hole. I guess mom was paying insur and daughter paid her back?? sounds like fraud to me but her mom is whacky anyway...daughter proved to her the receipts for repayment but mom never would release insur $ from car total. Has been using mom's car when it's avail. recently just to get around. I helped her get cleaning bus. going but just has about 4 clients now. She is considering filing bankruptcy next week. One of the creditors (out of 9) has just filed suit against her in court, she must appear tomorrow. She just started a cleaning business but has only 4 clients. She feels repmt would take all her life.
She was hoping for BK approval, a new start so she can get a car loan for her OWN car to increase her business since just using her mom's car now and it isn't avail much. Does anyone have advice on what order to pursue all this? I have suggested modified pmts. She says 'they want it all'. She feels if she repaid slowly, her credit score would 'never' go up?? I just don't have experience along these lines and not sure how to help her??? Do you think they will even approve bankruptcy? She had great credit before health problems several years ago and wants to get back where she was before health issues. auntie...thanks for any help!!

[SinkingFast]

Maybe start a new thread about this Jane and see what kind of responses you get.

[pv34pv3p]

Thanks everyone for the great advice and info....and pv34pv34p, that's mighty astute of you and I really appreciate the link...

It was spooky for a second... I thought you might be my neighbor or something. Most don't catch the military acronym stuff.

Thanks again...

Your very welcome Chief.

Sorry to spook ya...

Did 22 years myself...and the best day of my life was my first day sportin' Gold Fouled Anchors...

The link was the best I've found so far...but with regards to a 13 it says retirement is considered "disposable income".

Don't sound like you'll have a problem, but I might be a little closer to trippin' a wire...since I got a decent job 5 months before filing.

Anyway...your correct to start another thread on this and I'll contribute what I encounter a little further up the road.

Later Bro'

pv34pv3p(look at upside down)

[CPO]

Your very welcome Chief.

Sorry to spook ya...

Did 22 years myself...and the best day of my life was my first day sportin' Gold Fouled Anchors...

The link was the best I've found so far...but with regards to a 13 it says retirement is considered "disposable income".

Don't sound like you'll have a problem, but I might be a little closer to trippin' a wire...since I got a decent job 5 months before filing.

Anyway...your correct to start another thread on this and I'll contribute what I encounter a little further up the road.


Later Bro'

pv34pv3p(look at upside down)

Yea...that initiation was really a blast...I think I have still have my charge book laying around here and can still taste the grog.

It was the best of times.

Thanks for the great info. Has my attorney rethinking...which I hope is a good thing.

Later my friend.

[CATCHMEIFYOUCAN]

Wait Til' The Discharge

I thought one has to wait until their case was actually discharged to "up," their income. Which brings a question. Can't the Trustee re-open a Chapter 7if he feels theirs something fishy?

Catchmeifyoucan

[brainless twit]

I thought one has to wait until their case was actually discharged to "up," their income. Which brings a question. Can't the Trustee re-open a Chapter 7if he feels theirs something fishy?

That is true, but I don't think it's "fishy" to get a job unless you knew you were going to be working when you filed. In my case, I have been job searching for months (had I found a job, we wouldn't be filing) and it doesn't make sense to prevent me from working. Even with all our debt discharged, we still don't really have enough income to cover our expenses. A person can honestly answer "No" to the question "Do you expect your income to increase?" at the 341 because looking for a job does not guarantee that you'll get one.

[anonymuse]

I look at the classified often since I want to work closer to home (right now I'm 50 miles away) and, as most of us do, want higher income with better benefits (i.e. matching 401K) with opportunity for advancement.

My lawyer told me to call the job search off until after my case is discharged.

I'm not sure what access trustees have into your bank accounts (without asking for copies from us), but I'm sure there must be some access they can get into the money you earn that is reported to the IRS for your W-2 deductions. I really wouldn't want them to see monthly income of $3,200 jumping to $5,000.

Yes, I'm seriously underemployed right now--but not by choice. I accepted something lower since it had medical insurance--I had to look at the value of the total offer. Working as an independent contractor prior, it may have looked like I was making a lot more, but by the time I paid my own taxes and medical, and only work 3-6 months at a time (and then finding a new job each time), it's not so much of a great deal.

I'm always worried that a trustee will say something about having 2 master's degrees and making what I make, but believe me, it's nothing I'm going to bring up.