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What If My Employment Changes During My Bankruptcy Case?

What If My Employment Changes During My Bankruptcy Case?

: Richard West Law Office

If you need a fresh financial start and debt relief then filing for bankruptcy protection can offer this most of the time. You may be able to eliminate most or all of the debts owed and finally get control of your finances. This may help you improve other things, such as your employment options. What happens if you change from one employer to another while your bankruptcy case is active though? Will this disqualify you from getting the debt relief that you need? The answer will depend on the specific situation and may be different in each case. You will need to report the new job to the bankruptcy court and this should be done as soon as possible.

 

Once you have been offered a new job you should consult with the bankruptcy lawyer that you have retained. If you are handling your case without any professional legal representation then you should contact the bankruptcy trustee with the changes in employment. The trustee may ask a number of questions concerning your new income and position, and will evaluate the wages that you may earn as a result of switching employers. If the new position pays much better or there are other significant changes then this could impact your bankruptcy case.

 

The first step in determining how the changes will affect your bankruptcy case is a comparison between the old and new income levels. If your income does not change much then your case may not be affected at all. If there is a considerable increase then your case may be forced to undergo some changes. If you filed under chapter 7 and you no longer meet the Means Test then the case may be converted into a chapter 13 proceeding instead. This could mean that you will have to pay some of the debts owed before you can receive a discharge.

 

If you are currently in chapter 13 proceedings and you are forced to accept a lower wage or you lose your employment completely then this could have the opposite effect instead. If you do not have a regular income that can meet your monthly expenses and still have something left over for the creditors then you could have your case converted to a chapter 7 filing instead. If the case needs to be converted a qualified bankruptcy attorney can take care of all the necessary paperwork and documentation.

 

Many experts advise against trying to handle your own bankruptcy case because of complications that can occur, and changes in your employment can be one such complication. Every case may be affected differently, and some may not be changed at all while others may need to undergo a complete conversion and transformation. If you have started a case without a bankruptcy lawyer and this situation comes up then you should consult one as soon as possible. This will ensure that your case is not harmed or delayed, and that you still get the desired outcome that you want and need.