Will quitting job affect our filing for bankruptcy? 19 Answers as of June 11, 2013

My husband and I are filing chapter 13. I want to quit my job to stay home and care for my Dad who lives with us and is unable to care for himself, and our son. Will this damage our outcome?

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Law Office of D.L. Drain, P.A.
Law Office of D.L. Drain, P.A. | Diane L. Drain
It is possible. Talk to your chapter 13 bankruptcy attorney. If you do not have one then I highly recommend you do so.
Answer Applies to: Arizona
Replied: 6/11/2013
Richard L. Hirsh, P.C. | Richard L. Hirsh
You have a right not to work. However, the chapter 13 plan payment might be based on the 6 months prior to filing, so your past income would affect your case.
Answer Applies to: Illinois
Replied: 6/10/2013
Law Office of Thomas C. Phipps | Thomas C Phipps
Your chapter 13 plan payment is based on your disposable income at the time the plan was confirmed. Taking your income out of the equation will change the amount you can pay to the trustee. You need to discuss with your attorney an amendment to your plan.
Answer Applies to: Missouri
Replied: 6/6/2013
The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
The answer depends on facts you have not shared here. These include the goals of your case, your financial situation, the types of debts you are dealing with, and possibly some other issues.
Answer Applies to: Wisconsin
Replied: 6/5/2013
Law Offices of Joseph A. Mannis
Law Offices of Joseph A. Mannis | Todd Mannis
If you're not going to have income going forward with which to pay your plan payment, then yes, they would dismiss the case, or you could convert to Chapter 7, which might even be a good thing. Would need more info to answer your question more effectively.
Answer Applies to: California
Replied: 6/5/2013
    Law Offices of David A. Tilem | Michael Avanesian
    Just by itself, it should not affect the outcome. However, your bankruptcy attorney should do the full analysis, tell you what your payments are, etc. before you even file for bankruptcy. That's really the litmus test that allows you to know and decide what to do.
    Answer Applies to: California
    Replied: 6/5/2013
    Law Office of Robert Sisson | Robert Sisson
    Shouldn't hurt.
    Answer Applies to: Wisconsin
    Replied: 6/5/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    You must income in excess of expenses in order to fund an adequate ch 13 plan. If you can do that without a second income then you are fine. No one has to work to pay their creditors.
    Answer Applies to: New York
    Replied: 6/5/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It will if you can't make the plan payments. I'm assuming you need to catch up on something. You have to show that the plan is "feasible"- meaning you can make the payments.
    Answer Applies to: California
    Replied: 6/5/2013
    Morris Campbell LLC | W. Erin Morris-Campbell
    Seeing how your income would have been factored into your Chapter 13 plan payment, quitting your job will more than likely have a major impact on your ability to continue making the monthly payment that was confirmed by the bankruptcy court unless you can find a way to cut back on your household expenses to keep up with the payment. In the alternative, you can try to file motion to amend your Chapter 13 plan for the purpose of reducing your monthly payment. Depending on the current posture of your case (I.e., length, allowed POC; equity, amended household expenses/dependents; etc.), you may be able to reduce your payment without issue.
    Answer Applies to: Illinois
    Replied: 6/5/2013
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Reducing your income could affect your capacity to make the payments required under the Chapter 13. It would be a good idea to sit down with your lawyer and calculate alternative budgets, and/or alternative Ch.13 plans, to see if it can work for you.
    Answer Applies to: Wisconsin
    Replied: 6/5/2013
    The Wooten Legal Consulting, PC | Antoinette M. Wooten
    You can explain that the reason your income will decrease and, therefore, you will be unable to maintain your current lifestyle. You can also explain that you are leaving your employ in order to care for a sick parent. I believe the trustee will accept the truth and if you meet all of the requirements approve your chapter 13 plan.
    Answer Applies to: New York
    Replied: 6/5/2013
    Michael B. McFarland, P.A. | Michael B. McFarland
    At least one of you needs to have a "regular" income in order to qualify for Chapter 13. Also, it needs to be at least enough to make the Chapter 13 payments and still eat, etc.
    Answer Applies to: Idaho
    Replied: 6/5/2013
    Foster Law Group
    Foster Law Group | William Foster
    You need to speak to a bankruptcy attorney about this. A change of income will impact your chapter 13 but whether the impact is positive or negative, I cannot say. If you have certain debts which must be paid in full during the plan, the loss of income could impact that. If the chapter 13 plan is feasible despite the loss of income, then you will simply pay less into the chapter 13. One thing to keep in mind is that the trustee relies on the Means Test to determine the minimum distribution to your creditors. The means test is based on the last 6 months. Therefore, you may want to delay filing until at least 6 months has passed since you stopped working. Before you do anything, I suggest you contact a bankruptcy attorney regarding your situation. I don't have enough information to provide any meaningful suggestions.
    Answer Applies to: Colorado
    Replied: 6/5/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You need to speak with your attorney. Will you still be able to make your plan payments with reduced income?
    Answer Applies to: Colorado
    Replied: 6/5/2013
    Danville Law Group | Scott Jordan
    It will affect your income and disposable income relative to your ability to make plan payments. With the reduced income, you may qualify for a Chapter 7.
    Answer Applies to: California
    Replied: 6/5/2013
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Discuss this with your attorney, if you are going to do this it could have ramifications because it will reduce the household "income". If you do not have counsel, engage one.
    Answer Applies to: Michigan
    Replied: 6/5/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If you need the income to qualify for ch 13 then yes.
    Answer Applies to: New York
    Replied: 6/5/2013
    Weber & Phillips, P.A.
    Weber & Phillips, P.A. | John G. Phillips
    That depends on what you are trying to accomplish through your case and what you are required to pay. You need to speak to your attorney to be sure. If you do not have one, you may need to hire one.
    Answer Applies to: Arkansas
    Replied: 6/5/2013
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