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This may be an ignorant question, but...

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    This may be an ignorant question, but...

    If a person who is unemployed due to disability files for and obtains a no-asset Chapter 7 discharge but then returns to work, can the trustee either wait to close the case or reopen the bk in an effort to go after the new wages? And if so, would the discharge itself be revoked and the debtor forced into a Ch13, or what would happen?

    I am curious because this is my situation: I am certifiably disabled but may be able to return to work in a few months (depends on how the new treatment I'm getting works out; it actually starts tomorrow). I also disclosed this temporary disability freely on the I & J under the "Is your [income/expenses] reasonably expected to change" line on both schedules; I basically said that it is possible I might be able to return to work within a year, but when and at what level of income is impossible to know at this time.

    But the more I think about it, the more I wonder if it is possible for the trustee to refrain from closing my case long after discharge solely to see if I return to work and thus have wages to give him. And if he did keep my case open for that reason, what action would he be likely to take if my income did actually go up from $0?

    Returning to work would not be a windfall, nor am I *voluntarily* unemployed, and I did disclose it, so there's no question of fraud. But I do have a trustee that is certainly a go-getter. Anybody have any experience with this?

    Thanks so much!
    Nolo Press book on filing Chapter 7, there are others too. (I have no affiliation with Nolo Press; just a happy customer.) Best wishes to you!

    #2
    OK, realize this is a WAG, but if the new treatment could improve your ability to work within a month or two, the trustee might be interested in waiting to see if you are able to work. If it is expected to take much longer than that, I'd bet the farm the trustee wouldn't hold up your case just to wait and see.

    Then again, I could be wrong - trustee might not hold up your case no matter what!

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      #3
      Re the treatment, well, it might, it might not. But I did not disclose the nature of my disability (nor any treatments I am involved in) to the trustee, so he doesn't know if I have a broken ankle or a sprained head. I specifically left it vague in order to steer clear of armchair diagnosing on his part.

      But let's say he did wait, and I did return to work in a limited capacity? What action would he take in order to get at the $, force me into a 13?

      BTW, I appreciate all WAGs too; it's more than I have! When it's my own stuff, I tend not to see clearly because of what's at stake, know what I mean?
      Nolo Press book on filing Chapter 7, there are others too. (I have no affiliation with Nolo Press; just a happy customer.) Best wishes to you!

      Comment

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