Will an increase in salary after filing for chapter 7 cause my case to be dismissed? 18 Answers as of June 11, 2013

I was laid off from my job 6 months ago, and have been living on unemployment pay since then. I couldn't find work, and ended up having to file chapter 7 bankruptcy at the beginning of this month. The case is still being processed, so the discharge did not happen yet. But I just today finally got a job offer, which I will be accepting and starting work next month. But will it cause my chapter 7 case to be dismissed? I'm worried that the new job will ruin my bankruptcy. Do you know if it will? Please let me know. Thank you!

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Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
Generally an increase in salary after filing your bankruptcy petition will not have an effect on your case.
Answer Applies to: California
Replied: 4/5/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Most Chapter 7 Bankruptcy filings are snapshots of your financial picture. It is great news that you have found a job, and your new job may or may not impact your Bankruptcy depending on what stage of the case you are in. Unless you received a guarantee that you are not going to lose this new job and unless you are making a lot of money at the new job, it is unlikely that your case will be ruined. It would be a good idea to speak with your attorney.
Answer Applies to: New Hampshire
Replied: 3/30/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
The look back period for the means test is 6 months. So if you already filed, your new salary won't affect your Ch 7 bankruptcy filing.
Answer Applies to: Washington
Replied: 3/28/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
Getting a job post-petition will have no effect on the bankruptcy.
Answer Applies to: California
Replied: 3/28/2011
Uriarte & Wood, Attorneys at Law
Uriarte & Wood, Attorneys at Law | Robert G. Uriarte
It should not affect your case.
Answer Applies to: California
Replied: 3/28/2011
    The Law Office of John T. MacDonald Jr., PLLC
    The Law Office of John T. MacDonald Jr., PLLC | John MacDonald Jr.
    It is best to contact your bankruptcy attorney and disclose to him that you are accepting this new job that will be providing you additional income. I'm a Michigan Attorney that handles Chapter 7 and Chapter 13 bankruptcies if I can be of help please feel free to contract me.
    Answer Applies to: Michigan
    Replied: 3/28/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It depends on how much the new job pays, how many people are in your family and what your secured debts are. You need to see a lawyer.
    Answer Applies to: California
    Replied: 3/28/2011
    Cohen & Kendziorra, P.A.
    Cohen & Kendziorra, P.A. | Robert S. Cohen
    No, it will not.
    Answer Applies to: Florida
    Replied: 3/28/2011
    Law Office of Larry Webb
    Law Office of Larry Webb | Larry Webb
    No.
    Answer Applies to: California
    Replied: 6/11/2013
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Not likely, but possible. For the most part, bankruptcy eligibility is determined by circumstances existing or reasonably known at the time of filing. You would be expected to find gainful employment so as long as you are acting in good faith, you shouldn't have a problem. There is a case I'm aware of where an unemployed doctor tried to file but he knew he was getting a job paying $400,000/year after discharge, it was found that he was not acting in good faith and he was not given the discharge.
    Answer Applies to: Indiana
    Replied: 3/28/2011
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    It should not affect your discharge.
    Answer Applies to: New Hampshire
    Replied: 3/28/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    There are two budgets you need to do to get approved for Chapter 7. The most important budgetcalled the means test budgetis based on the last six months income. If you had no income other than unemployment for the past six months, you'd be eligible. The "real" budget on form I is supposed to show the changes you expect in your income. A good way to do it would be to show you are unemployed but "looking for work." It's very, very, very rare to get a challenge to your bankruptcy when you were unemployed and then got a job offer while the bankruptcy was going on.
    Answer Applies to: Virginia
    Replied: 3/28/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You estimated your income in the foreseeable future (projected income) on Schedule I and you estimated your expenses on Schedule J. If now you have a job the projected income may change substantially. Your projected expenses will also change substantiall (for taxes, charitable contributions and other expenses). Therefore, how much you will be making might make a difference. If you have too much net income (income minus expenses) then you might not be eligible for Chapter 7. It will depend on how much you will be earning and what your reasonable expenses will be including the deductions from your wages for taxes, medical insurance, etc. If too much net income then your case may be dismissed or you might have to convert the case to a Chapter 13 case if you still want to continue with your bankruptcy case.
    Answer Applies to: California
    Replied: 3/28/2011
    Law Office of Eric Ridley
    Law Office of Eric Ridley | Eric Ridley
    I can understand your concerns. A bankruptcy is stressful enough without adding more uncertainty. To answer your question, generally a change in your circumstances will not affect your filing or discharge at all. A bankruptcy proceeding is a snapshot of your situation on the exact day you filed your documents, and there are a VERY few, limited circumstances in which an increase in your income will change the outcome. Was it a large increase or a small increase? If it's a huge increase, and you knew about it when you filed, you could have trouble, and should disclose to the Trustee (remember, when you filled out the form, you were asked about any pending increase in income).
    Answer Applies to: California
    Replied: 3/28/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    You must address that question to the attorney you hired to do your bankruptcy. They would be in the best position to deal with your case.
    Answer Applies to: Alabama
    Replied: 3/28/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    If your income becomes such that you are able to make payments, it is possible that your case could be converted to a chapter 13 (repayment plan).
    Answer Applies to: California
    Replied: 3/28/2011
    Law Offices of Geoffrey Nwosu
    Law Offices of Geoffrey Nwosu | Geoffrey Nwosu
    Generally, It will not ruin your bankruptcy. However, each case and facts is different from another. The best approach is to discuss it with your bankruptcy attorney who knows the facts of your case.
    Answer Applies to: California
    Replied: 3/28/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    If you did not know about this new job when you filed your case there should be no problem in your Chapter 7. Congratulations on getting a new job!
    Answer Applies to: California
    Replied: 3/28/2011
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