income 2 weeks after filing a voluntary petition

[johnmasterson]

Hi,

This is my 1st post to a bankruptcy forum. I filed a chapter 7 voluntary petition on Oct 13, 2005. I assume that it will take 90 to 180 days before i get my debt discharged. In the meantime, can I go make as much income as i can without it going to the creditors?

eg. A friend has a house in foreclosure, and wants me to help him out of it by helping him file a chapter 13 to get an automatic stay and then borrowing 100k from my father, to pay off the person holding the first deed. In return he will give me 50% equity in his house or $50k at my choosing.

John

[Minnymouth]

HELLOOOOO!!!! Wake up!!!

First, you cannot buy or sell anything during the BK process.... and I'm sure that covers borrowing money also...

If you want to "raise a red flag" to the Trustee, borrow $100,000 from your dad for a "friend" and get back $50,000 as an investment.........sounds strange to me......

Let the trustee get wind of such a transaction and your case will be dismissed permanently... he could consider this FRAUD.....

Also the Trustee could "take the $50,000" and pay your creditors.

All income (large sums), inheritances, etc must be reported to the Trustee up to 180 days AFTER DISCHARGE.

You need to do some reading (since your new to the forum) about how Chapter 7 works and the rules to go buy.....

Don't mean to be so blunt, but you sure don't want your case dismissed for possible fraud....

Ask questions, we will help...... but also do some reading on your part.....

Be careful, the "strong arm of the bankruptcy court" can deal a bad blow.....

Just my thoughts,

Minny

[StaciMM]

I'm not sure if this would fall as income, but I would suggest consulting w/ an attorney as you could get royally scammed. If your dad gives him money to pay off the mortgage, he can't just give you money or ownership if he is in a 13 as any proceeds would become part of his bankruptcy estate.

Sounds fishy to me! Don't do anything without legal advice-you'd be putting yourself (and your dad's money) on the line.

[johnmasterson]

Thanks for all of your advice
I kind of didn't feel that foreclosed house was that great of an idea anyhow.

But my real question is: when is the date that I am freely able to go make as much money as possible without my 2 creditors having any ability to collect from future income. I had $2,000 in assets and the 2 creditors were:
1. a hospital for $3,000, and
2. the civil judgement for $73,000

I was depressed about this chapter 7 filing for the past year (losing the civil judgement after 2 years of litigation was the only reason I filed on Oct 13). I purposely kept my income low by not going out and getting the type of job that I am qualified for this past year, but now that I filed chap 7, I want to go out and get as high paying job as I can get, and I know I will succeed in doing so.

Do I have to wait until after the creditors meeting (or 60 after that) or until the discharge order. Or until 6 months or 1 year after the discharge order? One potential employer (the law firm that represented me in the civil case) who knows my situation says that they will structure my compensation anyway I would like it. eg. a split or combination between fees to a corporation or a trust (without my name associated with it) and/or wages to me personally and/or deferment of bonuses and commissions until next year.

I have done as much reading as i possibly can right now about chapter 7 and will do more over the coming weeks, but there doesn't seem to be one clear cut answer to my situation. I thought Chapter 7 is a complete liquidation so I can go re-start my financial career immediately and not have to play around with structuring my income strategically like I might have to do if I had a chapter 13 payment plan for 3 to 5 years.

Thank you very much for any further helpful hints.

[CindyLou]

just to be safe, at least wait until your creditors meeting to make a job or income change.