Income After Filing

[ease]

Can I not increase my income between filing and discharge? DH and I have slowly but surely been growing the practice. It's not some huge surge or windfall, but it's what needs to be done. In order to not get back into the debt cycle and keep our house, we need to make more money. I've read posts of people not taking jobs or looking for work during this time. What's the scoop? I thought they looked at the last month's income.

[willbfree]

Our atty told me to go find myself a job just this week. Our 341 isn't until mid-May but I didn't know when it was okay to start applying for jobs so I asked. Our atty said as soon as I found something to start working and not wait for the 341. So hi ho! hi ho! It's off to work I go!!

[Bankruptcy20]

I've heard from some that if you find a "good job" between filing BK and 341, that you may be subject to much more questions at the 341 and possibly, a tougher process...

It seems the safer time is after 341 but before the objection window at the earliest, or safer then after the objection window before discharge.

Anyone have any thoughts on this?

It goes to reason that a lower income job is one thing, but a job paying above state median may pose questions, I would think

[Beedlebrow]

It's an individual thing, depending on how much room you have on your means/disposable income numbers.
If you're close, you don't want toi suddenly increase your income and have your 6 month average go too high.
We had to file to dump the cc debt, then rebudget, and income was still tight on keeping the house and cars.
My wife got a new job, and when we turned all of our paperwork in to the attorney at the 6 month mark, he said we should file that week to get in before the next month, to keep one more check from my wifes new job from being a factor.
So our average was still pretty low.
Her new job is paying almost double what the old one did.

[Florida30]

I am in the same boat. I am unemployed (for 5.5 months now). Planned on filing after June 1st to have a clear 6 month test below median income due to severance and 401k cashed in right when I was laid off. But these past two weeks I have had several interviews and job prospects are looking really good. (just turned down one offer).

So consulted attorney and she said...file sooner, after May 1st. And if you get an offer after you file...take it.....as long as it is in the same range of your previous salary. Now, what she also said is if you "know" of a job that you will receive and file....that can be an issue for the trustee. But after you file, its unreasonable for the trustee to expect you to purposely remain unemployed for two additional months or until you receive your discharge.

Lastly, she also said, if you landed a new job making significantly more after filing that could possibly be an issue with the trustee.

I just had a 3rd interview with a prospective employer and I think this is pushing me to file soon, like after May 1st. My only concern is that this could be much more than what I was making before.

[TEW]

Can I not increase my income between filing and discharge? DH and I have slowly but surely been growing the practice. It's not some huge surge or windfall, but it's what needs to be done. In order to not get back into the debt cycle and keep our house, we need to make more money. I've read posts of people not taking jobs or looking for work during this time. What's the scoop? I thought they looked at the last month's income.

It's not a problem. remember it's a 6 month look back.

[frustrated7]

I am unemployed and my husband's income is all over the place. Our attorney recommended strongly that I wait until after the 341 to find a new job, though after the 341 and before discharge he thought I would be fine. I just have to wait until 5/8, though I have already sent out a couple of resumes to local places that look like really good jobs.

[arami008]

I also would like to find a job ASAP. So there shouldn't be a problem if we find jobs after the 341 meeting?

[chad9162]

It's not a problem. remember it's a 6 month look back.

I agree with TEW. Since the BK estate is based on the date of file and before. Things that occur after aren't part of the BK estate. My attorney said there has to be a "standard."

If you happened to be unemployed during the 6 month income average, then lucky you. Its the standard or the law.

[ItsJustMe]

I'm a newbie, just want to make sure I understand correctly.

So, the 6 months of income that is included in means test is 6 months prior to filing. Between filing and discharge income can exceed means as it won't be considered. Am I understanding that right? What is teh standard time frame between filing and discharge (and once you are discharged, you are free and clear to do whatever, right)?

[chad9162]

So, the 6 months of income that is included in means test is 6 months prior to filing.

Yes, so let say you file sometime in May...then the average income from NOV-APR would be used. Its the average income for the 6 months preceding the month you file.

Between filing and discharge income can exceed means as it won't be considered.

Well as long as you don't win the lottery, I don't see how it could come into play. Maybe lottery was bad example, if you start making a thousand dollars more a month then I could see it being a problem. I believe at the 341 they ask you if your income has increased.

What is teh standard time frame between filing and discharge (and once you are discharged, you are free and clear to do whatever, right)?

Standard time is usually 60 days after 341 for discharge. After discharge yes, you are free and clear, unless you had an asset that needed to be sold off etc....then you'd remain open but still have discharge.

[ItsJustMe]

Thank you, Chad

[TEW]

I'm a newbie, just want to make sure I understand correctly.

So, the 6 months of income that is included in means test is 6 months prior to filing. Between filing and discharge income can exceed means as it won't be considered. Am I understanding that right? What is teh standard time frame between filing and discharge (and once you are discharged, you are free and clear to do whatever, right)?

It is the income from all sources BEFORE the date of filing.

[chad9162]

It is the income from all sources BEFORE the date of filing.

Well TEW clarified it! He's a GURU!

[bees]

So let's say my income has dramatically increased after filing but before the 341. Is there anything that can happen at the 341 meeting that would cause the clock to be reset?

So if I have to submit something after the 341, will that reset the 6-month period? In other words, if the trustee asks for more paperwork, or whatever else can happen, will the 6-month period move from January to June 2009 to February to July 2009, for example?

Is that the danger in getting a job after filing?