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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My wife and I are wanting to file for chapter 7. she is employed

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My wife and I are wanting to file for chapter 7. she is employed and makes 48k per year and I am unemployed. If we file and and I get a job at 35k per year in between the time we file and it gets dismissed would that effect the the rule of being qualified between chapter 7 and having to file chapter 13 with regards XXXXX XXXXX earned?

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

cfortunato :

1) Is it "reasonably anticipated" that you will get a job within one year after filing a Bankruptcy?

cfortunato :

2) How many are in your household?

Customer:

yes..there 4 including myself

cfortunato :

Thank you for your response.

cfortunato :

When you file your Bankruptcy, you will be asked if you expect your income to significantly increase in the one year after filing.

cfortunato :

If the answer is "yes", then you will have to inform the Bankruptcy trustee when your income does increase (when you do get a job).

Customer:

what will happen then

cfortunato :

And if your job causes your income to go above the state median, you will be able to convert to a Chapter 13. However, the state median for a family of 4 in Virginia is $89,808. This means if you get a job that pays no more than $41,808 per year, then you will not have to convert your case to a Chapter 13.

cfortunato :

So, if you get a job that pays $35K per year, nothing will happen.

cfortunato :

But is you get a job paying more than $41,808 within one year after filing, you will be able to convert to a Chapter 13. (Otherwise your Chapter 7 will be dismissed.)

Customer:

i want to do chapter 7..dont want 13

cfortunato :

I understand. If you get a job paying $35K per year, you will qualify for a Chapter 7.

Customer:

if my base were 35k but I get commissions on top of that. Will commissions count since it is not guaranteed income

cfortunato :

The Bankruptcy trustee would look at your commissions for the first 6 months of your employment.

cfortunato :

And he will assume that is the amount of commission you will be earning going forward.

Customer:

just the first 6 months and not the rest of the year?

cfortunato :

The Means Test only looks at 6 months of income. The trustee is not going to wait one year to see what your commissions will be.

cfortunato :

He will take your 6-months worth of commissions and double that amount to get a projected annual commission income.

cfortunato :

So, if your commission earnings for the first 6 months of employment are under $3404 total, you will be able to continue with your Chapter 7.

Customer:

perfect..thank you for your help..

cfortunato :

You're welcome!

cfortunato :

And please have a pleasant evening!

cfortunato and other Bankruptcy Law Specialists are ready to help you