New Job before filing chapter 7

[Ann]

Really need input here. We are about to file chapter 7 in a few weeks. Just this week my husband was offered a better job with a slight increase in pay. We pass the means test not on what we made but on our expenses. My question is when the trustee asks us if anything has changed financially for us since we filed will they see that we have a slight increase in pay and want to put us into a 13? or will they simply use what we made in the last 6 months and allow us to follow through with the 7? I'm really worried about this. I haven't spoken with my attorney about this yet. I posted the same question in the chapter 7 forum but did not get a response. Please anyone give me some input here. Thank you!!!

[SMinGA]

Its kind of a gray area.

You say he has already been offered the job - has he accepted? When does he start? You also mentioned filing in a few weeks. Will he have started the new job by then? If so - I'm fairly certain the new job needs to be on schedule I, which will mean more disposable income. If you have too much disposable income, it will be hard to file ch. 7.

The means test looks back. But schedule I looks forward. So his current income (as of the day you file) should be on schedule I. If he has accepted a new job but not yet started, then its a sticky siutation & I think it really is a question for your attorney.

[Ann]

Its kind of a gray area.

You say he has already been offered the job - has he accepted? When does he start? You also mentioned filing in a few weeks. Will he have started the new job by then? If so - I'm fairly certain the new job needs to be on schedule I, which will mean more disposable income. If you have too much disposable income, it will be hard to file ch. 7.

The means test looks back. But schedule I looks forward. So his current income (as of the day you file) should be on schedule I. If he has accepted a new job but not yet started, then its a sticky siutation & I think it really is a question for your attorney.

Thanks for the reply SMinGA, Yes, he has accepted and he will begin on May 10. I'm pretty sure we will not have filed by then. As far as disposable income go I am right now unemployed and just found out that my daughter will need extensive orthodontic treatment. The new job will not cover that expense. That will be over $300.00 per month because of no ortho coverage. I know we will fail in a 13 simply because of the expenses we have. Also, beginning in September my second mortgage which gave me a temporary modification for a year will then adjust back to twice of what I pay now currently $355.00. If we can use a look forward then are these not acceptable expenses we can use? I hope. If anyone else can give me more input I would appreciate it!

[SMinGA]

They should be...

2 potential though likely minor issues:

a. there probably won't be a check stub from the new job by the time of filing. Most likely your attorney will need to file an amendment once you know the actual #s. Discuss with him ahead of time, so he doesn't charge you extra to amend.

b. the change in 2nd mortgage a few months down the road... Your attorney will probably know how to handle it, but it may be a slight issue since its now different. If I recall, didn't you have a car loan almost paid off? If you want to count what your 2nd will be in a few months then the trustee may balk at the car loan being gone soon.