QUESTION

Will personal CH. 7 bankruptcy be affected, because I'm still unemployed, if I should start freelance work or small business?

Asked on Jun 03rd, 2014 on Bankruptcy - Texas
More details to this question:
I want to get out of welfare and become self sufficient- will working freelance/small business/self employed like lawn mowing, car washing, etc. Be ok or will it affect my CH 7? Obviously my earnings will increase, but will it affect me in any way?
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1 ANSWER

Bankruptcy Attorney serving Burbank, CA
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It's not at all clear from your question whether you have already filed a Chapter 7 case or not.  The answers to your question are very different depending on that fact. If you are already in a Chapter 7 case, then getting a new job or starting a new business will not affect the case at all, so long as you didn't know about the job prior to filing and/or failed to disclose the probability of getting it. If you are not already in a Chapter 7, then your income will factor into your eligibility to file Chapter 7.  How so?   Chapter 7 eligibility is determined by numerous different factors. One of these is the so-called "means test" which looks at gross income received in the 6 calendar months prior to filing your case. Another test is the budget test which looks at your actual income and expenses on the date your case is filed. Analyzing such information is way beyond the scope of this forum.  You should definitely have a consultation with a bankruptcy attorney in your area to get more specifics on your situation. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.  
Answered on Jun 03rd, 2014 at 8:19 PM

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