QUESTION
Can I quit my job to file bankruptcy if my employer promises me the job back afterwards?
Asked on Oct 10th, 2012 on Bankruptcy - Florida
More details to this question:
I mentioned to my boss and he asked when I would want to take it over again.
12 ANSWERS
Daniel James Wilson
Why would you quit your job to file BK?
Answered on Jun 27th, 2013 at 12:22 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Get good advice about filing for bankruptcy. Do not do anything that could get you in trouble normally called "bankruptcy fraud" which is a felony. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Oct 14th, 2012 at 8:30 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Question: Can I quit my job to file bankruptcy if my employer promises me the job back afterwards? *- that stinks of trying to defraud the bankruptcy court; I'm not sure I'd recommend taking that action * Question Detail: I mentioned to my boss and he asked when I would want to take it over again. *- your last six months of income from the immediate 6 month period preceding the month of filing are what the court looks at to determine eligibility under the MEANS TEST for a Chapter 7; not having any income would DEFINITELY hurt you if you wanted to file a Chapter 13 because you'd have no disposable monthly income to support a confirmable plan. *
Answered on Oct 12th, 2012 at 9:58 AM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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People who are employed are permitted to file bankruptcy, so you may want to check if you qualify for bankruptcy even if you are employed. Also, you probably will be asked why you quit your job by the bankruptcy trustee; if you reply that it was so that you could file for bankruptcy and show that you had no income, that will come across as dishonest and the trustee would probably move to dismiss your case without a discharge. If you lie and state that you were fired, you could face liability in the future for bankruptcy fraud if the trustee discovers the dishonesty. In short, this course of action is probably not a good idea and will come across as dishonest and fraudulent to the bankruptcy court and trustee, and could land you in serious trouble. You should consult with a bankruptcy attorney to determine if you qualify even with your current income level.
Answered on Oct 11th, 2012 at 3:30 PM
Probate and Estate Planning Attorney serving Harrison, MI
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David T. McAndrew, Attorney at Law
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This makes no sense. You should not quit your job to file bankruptcy, it is not required nor will it be condoned. If you file under Chapter 13, you would need income to support your plan. Just talk to an attorney, and file the appropriate petition, and go to work.
Answered on Oct 11th, 2012 at 3:27 PM
Bankruptcy Attorney serving Columbus, OH
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The Needleman Law Office
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Bankruptcy must be filed in good faith. How do you know your employer is not baiting you so he does not have to pay unemployment benefits?
Answered on Oct 11th, 2012 at 3:19 PM
No, that would be illegal.
Answered on Oct 11th, 2012 at 3:18 PM
Why would you want to do that? Besides sounding like bad faith, the means test looks at your last 6 months of income to decide if you should be in a 13 instead of a 7. With no job, your chances of getting a payment plan confirmed are extremely low. You should consult a bankruptcy attorney before you go any further.
Answered on Oct 11th, 2012 at 3:18 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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To intentionally reduce your income immediately prior to filing a bankruptcy, with the promise of real employment later would be considered a bankruptcy fraud by most courts and subject to severe criminal penalties.
Answered on Oct 10th, 2012 at 7:00 PM
No, you cannot. A bankruptcy petition must be filed in good faith. Quitting a job for the specific reason to file bankruptcy and avoid creditors would be grounds to dismiss the bankruptcy petition; dismissing a petition results in you remaining liable for debts. You may qualify for Chapter 13 that would allow you to spread your payments over 3 to 5 years.
Answered on Oct 10th, 2012 at 7:00 PM
What you can do & what you should do are two very different things. I would urge you to look for a different strategy to qualify to file bankruptcy. This idea sounds like something someone might come up with after being out too late drinking in a bar.
Answered on Oct 10th, 2012 at 7:00 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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No, you cannot quit your job so that you can file bankruptcy, that is not the way it works or has to work. You can read about bankruptcy in a pamphlet available for download at my website.
Answered on Oct 10th, 2012 at 3:58 PM