QUESTION
Will an increase in salary after filing for chapter 7 cause my case to be dismissed? How?
Asked on Aug 20th, 2015 on Bankruptcy - Colorado
More details to this question:
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!
9 ANSWERS
No one had a crystal ball at the time you filed bankruptcy, and when you filed, it sounds like you did so in good faith. After the stress of dealing with your debts was relieved, your personality may have changed and you be so happy that you became more employable. Everyone in the bankruptcy court system is happy this happened and it will not prevent you from getting your discharge. I am happy for you too, as I am for my many clients who have had this wonderful karma occur.
Answered on Aug 21st, 2015 at 1:20 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, the income test in chapter 7 only includes the six months prior to the month of filing. So a post petition income change won't affect your status.
Answered on Aug 21st, 2015 at 9:55 AM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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The income is calculated for your income as of the date you file bankruptcy.
Answered on Aug 21st, 2015 at 9:12 AM
2 Awards
Your new job should have no effect on your bankruptcy. The key time frame looked at is the date of filing and six months prior to filing.
Answered on Aug 20th, 2015 at 1:28 PM
Derek W. Freeman
No. All that matters in a chapter 7 is your situation on the day you filed your case. There are some exceptions to this rule, for instance if you suddenly receive an inheritance, but as far as employment income is concerned, any post-petition increase in income is irrelevant to your eligibility to get a discharge in a chapter 7.
Answered on Aug 20th, 2015 at 1:11 PM
The focus is the date of filing. You're okay.
Answered on Aug 20th, 2015 at 12:49 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I, nor anyone on the Internet, can rationally answer your question. Your bankruptcy attorney should be able to do so. If you do not have representation I would suggest you engage a bankruptcy practitioner immediately to represent your interests.
Answered on Aug 20th, 2015 at 12:49 PM
No only if it was a chapter 13 would it have effected your case.
Answered on Aug 20th, 2015 at 12:49 PM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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The simple answer is no. When you filed your bankruptcy petition, you had no job and sometime later you received a job offer. Your post-petition income belongs to you and there should be no impact on your bankruptcy case. Good luck and congratulations.
Answered on Aug 20th, 2015 at 12:49 PM