If I want to file for chapter 7, can i quit my job and file bankruptcy? 19 Answers as of July 04, 2013

I am over the earning limit for chapter 7, can I quit my job and file then get another job?

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Dan Shay Law
Dan Shay Law | Daniel Shay
Yes. The Means Test looks at the 6 months leading up to the filing date, so you may have to wait a few months after quitting to pass the Means Test.
Answer Applies to: California
Replied: 7/14/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Quitting your job to file bankruptcy is a poor choice. First, you will need to remain unemployed for a minimum of a couple of months, eating into any savings you may have. Secondly, you may not be employed again right away. If you are looking to get rid of debt, speak with an attorney about filing chapter 13.
Answer Applies to: New Hampshire
Replied: 7/11/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
The look back period is 6 months prior to BK. The Trustee will look at your income during that period of time.
Answer Applies to: Washington
Replied: 7/11/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
That's fraudulent. You may not really be over, once the calculations are done. See a lawyer to get the best advice for you personally.
Answer Applies to: Virginia
Replied: 7/11/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
If you are over the earning limit for chapter 7 you can wait until you are under the limit if your income is subject to change. You might also want to consider filing chapter 13.
Answer Applies to: California
Replied: 7/11/2011
    Sentinel Law P.A.
    Sentinel Law P.A. | Joshua Cossey
    Chapter 7 is based on your last six months of income. If you lose your job and have unemployment for a few months, the means test will take into account the average of the last six months, thereby adjusting your qualifications under the means test. This response does not create an attorney-client relationship. Unless you are already a client of Sentinel Law, P.A., pursuant to an executed attorney-client agreement, you should not use, interpret, or rely on this response as legal advice or opinion. Do not act on any information in this response without speaking to an attorney, as there may be details surrounding your situation that would give rise to further explanation or clarification.
    Answer Applies to: Florida
    Replied: 7/7/2011
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    The means test is based upon your average monthly income for the six months prior to filing so if you lose your job and your average income falls below the income ceiling you should be eligible for a chapter 7.
    Answer Applies to: Georgia
    Replied: 7/7/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Well that is a risky move. The unemployment rate is quite high. What guarantee do you have of getting another job? Talk to a lawyer about chapter 13.
    Answer Applies to: California
    Replied: 7/7/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    The means test, to which you are referring, looks at your income for the past six months. So you would have to no income for possibly several months. Additionally, if you have the income to fund a Chapter 13 after filing the Chapter 7, you may face having to convert to a Chapter 13 or face dismissal.
    Answer Applies to: California
    Replied: 7/7/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    No, you can't do that and have a successful bankruptcy. The bankruptcy Trustee would ask the court to have you debts declared forever non-dischargable for trying to manipulate the system.
    Answer Applies to: Indiana
    Replied: 7/7/2011
    Law Office of Asaph Abrams
    Law Office of Asaph Abrams | Asaph Abrams
    For Heaven's sake, no. That is fraudulent and bad-faith practice that would compel dismissal, denial of discharge, and/or worse (think in terms of those FBI warnings on your DVD rentals-serious stuff!). In addition to present income, both past income and projected income are factored into eligibility.
    Answer Applies to: California
    Replied: 7/7/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    You can but it is probably not necessary to quit your job.
    Answer Applies to: California
    Replied: 7/7/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    The period for determining eligibility to file a Chapter 7 is the 6 full calendar months before filing. You may have to be unemployed for several months before you qualify and if the court determines that you left your employment solely to file for bankruptcy the case could be dismissed for a lack of good faith.
    Answer Applies to: Colorado
    Replied: 7/7/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Whether you qualify for a chapter 7 bankruptcy will depend on your last 6 months of income, so technically yes. However if a trustee thinks you are abusing the system that could cause a problem for you.
    Answer Applies to: Washington
    Replied: 7/6/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    The criterion for filing a Chapter 13 plan is based on your previous 6 months income, so you are talking about not working for that long.
    Answer Applies to: California
    Replied: 7/4/2013
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Be mindful of bankruptcy fraud.
    Answer Applies to: California
    Replied: 7/4/2013
    Law Offices of Michael T. Krueger
    Law Offices of Michael T. Krueger | Michael Krueger
    How do you know you're over the limit? Have you completed a means test? When all factors are taken into consideration you very well may be under the limit to file a chapter 7. If you don't qualify for a chapter 7 you may qualify for a chapter 13 and you won't have to quit your job. If, after a consultation with a bankruptcy attorney it is determined that the only way for you to qualify for bankruptcy is to quit your job it is possible. You must wait at least 6 months until you file bankruptcy because you have to show your last 6 months of pay stubs.
    Answer Applies to: California
    Replied: 7/6/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    That would be foolish. First of all, since your ability to file is based on your past and not your present income, that won't even work. Second, if discovered by the court, it would show bad faith and could be grounds for denial of a discharge. Third, your question tells me that you don't even have a lawyer, as the means test is not decided by whether you are over or under a magic number. If you over, many additional numbers, and a lawyer knows how to look at this, could help you still "pass" the means test. So give up on your bad idea and see a lawyer for real ideas.
    Answer Applies to: Georgia
    Replied: 7/6/2011
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