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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2897
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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My parents are in bad health and live in a small town in TX.

Resolved Question:

My parents are in bad health and live in a small town in TX. My wife, children and myself need to go down and take care of them during their last years. We currently live in CO.

If my wife and I quit our jobs to go down there to take care my parents. It is very likely that we will be unemployed for a long time, which we have come to accept. We were considering chapter 7 bankruptcy as we obviously will not be able to pay our bills.

We have a mortgage + a second, two-car loans and an about 16K in medical bills. We currently make too much to qualify for chapter 7, but obviously this will not be the case when we have to quit work to take care of my parents.

I am worried that if things happen they way I think they will, that we will be unable to file chapter 7 because we quit our jobs.

I guess I just need clarity on how the courts will view this. Thanks!
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
You can quit your jobs to care for your folks. That will not be looked negatively upon in the eyes of the bankruptcy court. If something is reasonable and necessary, then the courts will allow it. The means test calculation is based on the 6 months of income leading up to the case filing. If you move to Texas, and wish to file there, you would need to wait 91 days to file there once you move to establish jurisdiction there, otherwise you would need to file in CO. Meet with a local bankruptcy attorney to run the means test for you. Just because you are over the median income level, doesn't mean you won't pass the means test, there are allowable deductions, including care for elderly, that can be deducted in that calculation. You may still qualify for ch7, even without quitting your job. most attorneys will offer a free consultation to review your case, do it, that way you can make the necessary planning needed. Thanks for your question, and wish you and yours the best of luck. Thanks.
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