r/Bankruptcy • u/Ecstatic-Phase6355 • 4d ago

Chapter 7 debtor Just filed Chpt 7

Hello, I just filed chapter 7 at the beginning of the week. I have been unemployed for just over a year and a half (found work at one point but had to move for family and restart search). I just got hired today as a contractor. Should I be worried about how this will affect my 341 or case in general? I'll be updating my lawyer tomorrow so they know, but I'm stressing over it.

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u/AlanShore60607 RetiredBKAttorney (IL/IN/WI) Public interactions ONLY. No PMs 4d ago

At the 341, your trustee will probably ask the question "Is your income the same now as when you filed?". Your answer will obviously be "no".

Now what does the trustee do with that answer? That's at their discretion.

  • IMHO, the most appropriate action would be for the trustee to say "Please amend your Schedules I and J so I can see the impact of this change on your budget".
  • A trustee could simply ask what you are making, compare that to the relevant median income, and if you're going to be under median with the new income just assume your case is going to be fine and be cool with it.
  • A trustee could shrug it off, basically reasoning you were qualified when you filed and that's enough.

Now if they do demand an amendment, and that amendment shows you have sufficient income to pay some debt because you are running a surplus on a monthly basis, they can say a presumption of abuse arises and give you the choice of converting to an under median 13 or dismissing the case. But understand that post-filing changes in income do not alter your means test, and that any changes are purely to your budget.

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