What happens after bankrupcy?

If you get a great, higher-paying job before your creditors' meeting, which is 3 to 5 weeks after filing, the US Trustee will probably expect you to amend your Schedule I concerning present & projected income. If you interviewed or were offered the job before filing, it could mean real trouble. After that, at least in my jurisdiction, you're free to move make as much as possible. There is no way to get the filing off your credit report early, & most employers do check credit reports.

If you got a well paying job, you could convert your petition to one under Chapter 13 with a repayment plan or you could simply dismiss your bankruptcy. Neither would remove the bankruptcy from your credit report but a conversion to Chapter 13 would cut down the time it appears on your credit report. If you stay in Chapter 7, there is no legal way to get a Chapter 7 bankruptcy off of your credit report in less than 10 years that I am aware of. I am also unaware of anyone having difficulty finding work after filing bankruptcy.

Generally speaking, the Chapter 7 Trustee looks at the Debtor's income as of the filing date of the case, rarely considers it after that. Bankruptcies can stay on credit reports "up to ten years"- not a bad idea to make sure all loans/car loans/new debts are promptly paid afterwards to start building up one's credit report again. Although bankruptcy is not be considered in public or private hiring, it sometimes can be an illegal "hidden" factor.

When you file bankruptcy they care mainly about your income and expenses as of the date of filing and the 6 month period prior to filing bankruptcy. The Trustee does have a right to ask, and will most likely ask, if you have any changes to your financial circumstances since you filed bankruptcy until the date of filing or if you have any potential much higher income coming in. They can take that into consideration to see if you have the ability to pay back your creditors. I have not seen a Trustee push a debtor into chapter 13 bankruptcy or prevent the discharge of their case because of this. I would file the bankruptcy prior to interviewing or getting a new job. After your Meeting of Creditors, after your Trustee has filed a Notice of No Asset Report and concluded his/her review of your case they will not really look back into your case to check if you got a new job. You are fine to move ahead with a new higher paying job. What you do need to disclose, however, is if you come into a windfall of money - i.e. win the lotto, receive an inheritance, sell your house and get a lot of equity out of it, etc. - within 6 months from the date of your bankruptcy filing. With that in mind, you are free to take higher paying jobs. In regards to your credit report. The bankruptcy will be on your credit report for 10 years for notice purposes, however, after you receive your discharge, the first few months you will already start receive credit card applications. If you take one or two cards, make your payments on time you'll start rebuilding your credit within the first year. Depending how well you are on your payments and credit activity you can receive a new mortgage within 2-3 years. In regards to getting a new job or renting a new place to live - some people will care and will make it hard the first couple years, but in this economy a lot of others do not care. Keep in mind that approx 2 million people file bankruptcy on average each year. These same people get jobs, rent new homes, get new mortgages, etc.

If your financial picture changes between filing and the creditors meeting, this will have to be disclosed at the creditors meeting. The change could very well make you ineligible for a chapter seven because of the means test. If this happens after discharge then there is no problem unless there was fraud involved. The amount of time on your credit record is determined by the policies of the credit reporting agency.

Depending on the jurisdiction for your bankruptcy you may be required to notify the trustee of any significant change in income. Normally the entry of the discharge and closing of the file stops the trustee's involvement in a chapter 7 case. Of course, that assumes the debtor disclosed all their assets. A bankruptcy stays on your creditor for 10 years. In Arizona an employer does not need a reason to fire the employee, but it is very rare to see this happen just because the employee filed for bankruptcy. The Bankruptcy Code has some protection for certain employees. The issue is the potential employer using credit, including bankruptcy, as a criteria to hire. Again, Arizona is an employment at-will state.

A fresh start. A new job after filing chapter 7 is good fortune and does not affect your bankruptcy. In fact if you have been unemployed for some time and have built up a lot of unsecured debt filing bankruptcy after getting a well-paying job can be very smart financial decision. Credit reporting agencies will not remove the bankruptcy reference until the appropriate period runs. But bankruptcy is not the stigma it once was and in a year or two with good financial management and living within your income you should be able get a mortgage etc. You can't be fired because you filed bankruptcy. In public sector employment you can't be discriminated against because you filed bankruptcy.

Chapter 7 is (generally) a snapshot of your financial condition at filing. Getting a good job after filing is irrelevant. You cannot get Bankruptcy removed from credit report. Length of time is up to policy of credit reporters.

The new you begins at filing. Past is past Bankruptcy stays with you. Walt Disney filed, is now Dow Jones stock.