Does getting a new job affect bankruptcy status?

[jjhouse]

I am looking to file ch 7, since I fall below the median income on the means test. I am expecting to start a new job next month which raises my income.

My question is:

1. If I file before starting the new job, would there be any complications with filing ch 7? or during the 341?

2. Would I still be able to I file ch 7 during my first month of employment, so long as I have not received a paycheck?

Thanks for your advice.

[Cali]

When do you want to file?

Will the new income take you over the median?

Once you file, if anything changes before the 341 you have to notify your attorney.

[magyar123]

I am looking to file ch 7, since I fall below the median income on the means test. I am expecting to start a new job next month which raises my income.

My question is:

1. If I file before starting the new job, would there be any complications with filing ch 7? or during the 341?

2. Would I still be able to I file ch 7 during my first month of employment, so long as I have not received a paycheck?

Thanks for your advice.

As to #1 - At the 341 hearing a nosy trustee might ask you if you if there has been any changes in your finances since the date you filed. If you start the new job between filing and the 341, you're history as far as Chapter 7s are concerned.
#2 - NO

[JRScott]

How large an increase in income are we talking?

[jjhouse]

I am currently self-employed. I brought home a putrid $1,000 over the the past 5 months since opening the business. My wife's income is not enough to get us by. Our income combined for the past 5 months fall below the median income that is why I was looking to file a ch 7.

Just recently, I have found a job where it would put our combined income well over the median income. Also, we should manage to make it by with both our salaries after paying all the bills. My job starts in November which was supposed to be the month where I would have filed ch 7. So here I am with this dilemma. With the new job, I may able to hold off filing ch 7 so long as they keep me but with the market the way it is, who knows. I'm guessing that I probably would not qualify for ch 7 anymore since I my income is expected to go up soon.

Since my situation has changed, maybe I will try to wait it out and see if I can continue making my payments. I'm current in all bills paid except one credit card.

Any advice is greatly appreciated.

[lrprn]

Since my situation has changed, maybe I will try to wait it out and see if I can continue making my payments. I'm current in all bills paid except one credit card.

If your income will increase sufficiently to pay off the one credit card over the next several years and not compromise your family's financial well-being, that's a better way to go than filing bankruptcy.

You should pull the bk trigger only when there's no other option left because you don't know what unexpected financial disasters may be coming your way during the next 4 years before you could file a Ch 13 or 8 years when you could file a 7 again.

[jjhouse]

thank you for all the responses. I have another question that gets more complicated.

This new job that I am about to start pays me a percentage of what they make. HOwever, I only get paid when they get paid. So, if they collect X amount of dollars for their services in a month, I get a percentage of that income. If they havent been paid, then I get nothing. So there really is no way of telling how much money I would bring home each month.

What I am sure of is that I am guaranteed at least a percentage of the monthly cash flow that comes in, which I estimated my cut would be around $200-$500 per month. In this scenario, our household income would still fall below the median and filing ch 7 may still be a possibility since the income would not be enough to pay the bills.

However, what happens if I file ch 7 and a month or two later my income goes up by $2,000-$4,000? Like I said, I only get fully paid when the company received a payment so it's quite unpredictable what income I would have in addition to the $200-$500 per month. WOuld I need to change bankruptcy status to ch 13 if this happened before the 341? What happens if my income goes up AFTER the 341?

THinking about this gives me a headache. Once again, any advice is greatly appreciated.