Change in Income After Creditor's Meeting

[ApresMoi]

My income when I filed was at $1900 per month from unemployment. I filed in mid-April, and a creditor's meeting is set for mid-May (this month). Shortly after filing, my unemployment ended, at which time I found a short-term temp job at $17 per hour or $2700 for the month. That job is coming to an end and going forward, I hope to find more temp work (if I am lucky...everyone is competing for the same few temp jobs in California).

If a BK trustee sees too much of a change in income (from what I reported at the time of filing) he/she can dismiss based on a 'change in circumstances'. Apparently they can do this right up to the time of discharge. But what about creditors? Has anyone heard of creditor's 'tracking' debtors post-filing income and making objections themselves?

When I talked to BofA early on (and before I knew better), they asked me what I used to make. I did not give them a dollar amount, but did leave them with the impression that I could fairly easily pay down my debt if I had been able to replace the job I lost (at the same salary level). Months later, when I notified BofA that I was filing for BK, they again asked me what I expected to earn in future. At that time, i told them 'not much' (which was the truth...can't find work...which is the primary reason I am having to file in the first place). Of all the creditors, BofA is the one that has seemed most interested in my earning potential, I have to say.

Again, has anyone heard of creditors tracking debtors income post filing? And creating problems for the debtor during BK based on that income?

Thanks in advance for any comments.

[newbie2]

My income when I filed was at $1900 per month from unemployment. I filed in mid-April, and a creditor's meeting is set for mid-May (this month). Shortly after filing, my unemployment ended, at which time I found a short-term temp job at $17 per hour or $2700 for the month. That job is coming to an end and going forward, I hope to find more temp work (if I am lucky...everyone is competing for the same few temp jobs in California).

If a BK trustee sees too much of a change in income (from what I reported at the time of filing) he/she can dismiss based on a 'change in circumstances'. Apparently they can do this right up to the time of discharge. But what about creditors? Has anyone heard of creditor's 'tracking' debtors post-filing income and making objections themselves?

When I talked to BofA early on (and before I knew better), they asked me what I used to make. I did not give them a dollar amount, but did leave them with the impression that I could fairly easily pay down my debt if I had been able to replace the job I lost (at the same salary level). Months later, when I notified BofA that I was filing for BK, they again asked me what I expected to earn in future. At that time, i told them 'not much' (which was the truth...can't find work...which is the primary reason I am having to file in the first place). Of all the creditors, BofA is the one that has seemed most interested in my earning potential, I have to say.

Again, has anyone heard of creditors tracking debtors income post filing? And creating problems for the debtor during BK based on that income?

Thanks in advance for any comments.

Not once have I ever heard about a creditor asking about future income of the filer who has filed for BK. Even with the increased income you still appear to be well under the median income. Frankly, I would put them out of your mind. It's not worth stressing over. They are not going to go to your 341 and ask you in front of the trustee how much you expect to make in the future.

[Moneypenny]

I am interested in what you said about 1) the BK trustee seeing too much of a change of income and 2) even up to the time of discharge.

1) If you are under median at the 341 and it goes smoothly, what is the change that the BK trustee is going to see at the time of the meeting? Is the trustee going to be asking to see your latest bank statement at the time of the meeting, rather than at time of filing? Does he/she have time for that?

2) You say after the 341 but up to the discharge 60 days or more later, the BK trustee can object due to change of circumstances. Is the trustee really going to be checking your bank balances and income in the interval between the 341 and discharge? do they have time for that?

I am asking these sincerely, not trying to make it sound like these are ridiculous questions. If there really is close monitoring, then it is not wrong to wonder...

MMP

[ApresMoi]

No, of course it is not wrong to wonder, or to ask questions. Ask away!

When I go to the 341, I will be asked whether my circumstances have changed. If I report that I have landed a job at 55K (the median in CA is 48K for a single household), then the Trustee would likely dismiss. I'd be over the median, etc.

But I am not making that now. I'm temping. A trustee is not going to have a problem given the income I have now because even though I am earning more than I was getting on unemployment, it's not a lot more. I am also still way under the median, as you say.

I have no idea what creditors do (vis a vis income) or what they are interested in ... just thought it was curious that BofA asked me more than once what I thought I would be earning. I think they were trying to gauge whether they could build a case/object? If n one here as heard of them asking about such things, I'll stop worrying now.

****

Moneypenny: I am interested in what you said about 1) the BK trustee seeing too much of a change of income and 2) even up to the time of discharge.

1) If you are under median at the 341 and it goes smoothly, what is the change that the BK trustee is going to see at the time of the meeting? Is the trustee going to be asking to see your latest bank statement at the time of the meeting, rather than at time of filing? Does he/she have time for that?

2) You say after the 341 but up to the discharge 60 days or more later, the BK trustee can object due to change of circumstances. Is the trustee really going to be checking your bank balances and income in the interval between the 341 and discharge? do they have time for that?

I am asking these sincerely, not trying to make it sound like these are ridiculous questions. If there really is close monitoring, then it is not wrong to wonder...

MMP[/QUOTE]