Filed Chapter 7 this week and new job

[vagrl]

I could really use some help....

I just filed chapter 7 this week (under the median), but as luck would have it...I just interviewed for a job...and it looks really, really promising...as in ..I am filling out paperwork next week for background check...

The only problem...I will make more money...and it will put me over the median... I have been looking for a job for months...and this happens!

What should I do? 341 is not scheduled yet...and I officially don't have the job until all the paperwork is done....I haven't even told my current employer.

(If i do get this job...I probably won't even get paid until mid-sept.)

Has anyone heard/done this before? Over median, new job?

thanks..I am scared, happy, and very concerned...

[doomed]

I thought they count your last 6 months wages?

[despritfreya]

You proceed with your Chapter 7 and thank the heavens that you were blessed to find better employment. Since you did not know that you were going to have this job as of the filing date it does not matter.

[tcreegan]

12 months

Hi all,

doomed, I think it is last 12 months (averaged)

vagrl, they are the 12 months prior to filing

Congrats on the new job! New start, new job....I'm jealous...

Tom in Colo

[Fallonedward]

Hi all,

doomed, I think it is last 12 months (averaged)

vagrl, they are the 12 months prior to filing

Congrats on the new job! New start, new job....I'm jealous...

Tom in Colo

One of the attorneys told us its a 6 month look back. Since hubby is out of work and not able to find a new job and mine is below the median income for a family of 5, we were told we would have to wait 6 months from the date of the severance payout and then our look back would only include my income plus UI.

Is this now incorrect?

[justbroke]

Let's step back and take a look at these things separately.

First, passing the Means Test involves taking a look at what they call your "current monthly income" (CMI). Your CMi is based on the average of your income from all source in the last 6 months before filing. If you are under the median, you do not need to complete the rest of the Means Test to determine your disposable income. If you are over the median, you continue filing out the Means Test to determine your disposable income and if it's less than $182.50/month, you basically qualify. However, in both case, this is just a "bright line" test to see if you qualify based on income. Of course, your expenses must justify it as well.

Second, if you get a better job after filing, this may change your answers at your 341 Meeting. The Trustee will ask if anything changed financially or with your job. It is important to know that unless you actually started the new job, the answer to this question will be "NO"! You don't elaborate at all, just answer yes or no and the answer is obviously "no" because you haven't started the new job. What becomes problematic, however, is if you answer "yes"... the United States Trustee (UST) may become involved if the job puts you over the median and there's a generally question of whether you should be granted a discharge.

This is generally because some people "time" their unemployment or new jobs so that they file before it "counts" against them. The UST, while they can't say you completed the Means Test wrong, they can claim "totality of circumstances" (11 USC 707(b)(3)) since you are not deserving at that point.

[wipetheslate]

This is generally because some people "time" their unemployment or new jobs so that they file before it "counts" against them. The UST, while they can't say you completed the Means Test wrong, they can claim "totality of circumstances" (11 USC 707(b)(3)) since you are not deserving at that point.

Isn't this timing exactly what financial planners suggest? I.e., don't file bankruptcy if your broke (judgment proof) as you're probably just going to keep getting further behind. Wait until you have just started your job and you actually have a chance to get from behind the 8 ball.

[justbroke]

Isn't this timing exactly what financial planners suggest? I.e., don't file bankruptcy if your broke (judgment proof) as you're probably just going to keep getting further behind. Wait until you have just started your job and you actually have a chance to get from behind the 8 ball.

In theory, yes, but some USTs look for the "just" starting a new job tactic. That's why it's one of the standard 10 questions. No one is technically "judgment" proof. You could be "collection" proof. In most cases, people have assets that a judgment can be levied against anyhow.

[tcreegan]

six months for means test

Hello all, my oooops.....on the means test you average the 6 months preceding the filing date. Instructions are specific for this.

On sched I you can use a different average, there is no guidance on how far you can average. I have heard many people using 12 months.

Then you have your local trustee......some want your lifestory and some don't.

Sorry for the error,

Tom in Colo

[vagrl]

I called my attorney and let them know of the situation...they didn't seem concerned. They said the trustee looks at the past six months of earnings. I was told not to stress out...because that is exactly what I was doing.