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  1. #1
    Join Date
    Feb 2013
    Posts
    5

    Default Chapter 7 and Increase in Wages

    My question involves bankruptcy in the state of: Ohio

    My husband was getting ready to file chapter 7 bankruptcy when I was offered a new job that comes with a substantial pay increase. I took the online means test and it shows that based on the past 6 months we still qualify even though we meet the median income. I even played with the incomes and he would still pass the means test if we were to file in one months time with a full month of my new income.

    My concern is how my future income plays into this. His lawyer says it should not be a problem. I don't want to pay out all this money and then have his bankruptcy be denied due to my promotion. He is still very deep in debt regardless of my new paycheck (credit cards with very high minimum payments and interest rates).

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Chapter 7 and Increase in Pay

    Quote Quoting slc
    View Post
    My question involves bankruptcy in the state of: Ohio

    My husband was getting ready to file chapter 7 bankruptcy when I was offered a new job that comes with a substantial pay increase. I took the online means test and it shows that based on the past 6 months we still qualify even though we meet the median income. I even played with the incomes and he would still pass the means test if we were to file in one months time with a full month of my new income.

    My concern is how my future income plays into this. His lawyer says it should not be a problem. I don't want to pay out all this money and then have his bankruptcy be denied due to my promotion. He is still very deep in debt regardless of my new paycheck (credit cards with very high minimum payments and interest rates).
    You should be listening to the attorney.

  3. #3
    Join Date
    Feb 2013
    Posts
    5

    Default Re: Chapter 7 and Increase in Pay

    Quote Quoting llworking
    View Post
    You should be listening to the attorney.
    So my future income will have no play in this? The reason I am questioning it is when we were looking for a lawyer, we mentioned this possibility to one of them and they made it sound like it could be an issue and urged us to file right away. They said there was some sort of forward looking test we had to pass. Our current lawyer does not have all of our information yet as we just started collecting it.

  4. #4
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Chapter 7 and Increase in Pay

    Passing "means testing" only means there is no “presumption of abuse” in filing the Chapter 7. You still have to show the court that, under the “totality of the circumstances” you are deserving of a Chapter 7 discharge.

    Assuming you have accepted the job offer, you now have definite employment and a known monthly income. If the attny says it is not a problem one can only assume that with your income included in the mix, Schedule I and J still shows that your “real” budget leaves you close to or in the negative each month. Does it? If so then you should be fine. If your budget shows you have the ability to pay something meaningful to your creditors each month you may be in for a fight.

    Des.

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