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