Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.
1) Is it "reasonably anticipated" that you will get a job within one year after filing a Bankruptcy?
2) How many are in your household?
yes..there 4 including myself
Thank you for your response.
When you file your Bankruptcy, you will be asked if you expect your income to significantly increase in the one year after filing.
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).
what will happen then
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.
So, if you get a job that pays $35K per year, nothing will happen.
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.)
i want to do chapter 7..dont want 13
I understand. If you get a job paying $35K per year, you will qualify for a Chapter 7.
if my base were 35k but I get commissions on top of that. Will commissions count since it is not guaranteed income
The Bankruptcy trustee would look at your commissions for the first 6 months of your employment.
And he will assume that is the amount of commission you will be earning going forward.
just the first 6 months and not the rest of the year?
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.
He will take your 6-months worth of commissions and double that amount to get a projected annual commission income.
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.
perfect..thank you for your help..
And please have a pleasant evening!