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Ch 7 circumstances have changed - need advice

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nap68

Junior Member
What is the name of your state? NY
We have recently (03/24) filed for Ch 7, have the 341 set for 05/20, and have about $24k in unsecured non priority debt (after student loans, which I doubt we'd win if petitioned to discharge. Our debt is owed mostly to utilities, since we moved around a lot while I was searching for IT work since about 2001 (found only crappy contract work that never seemed to be enough to pay the bills nor lasted very long), however, we are staring at about $7k in judgements. My wife landed her first accounting position this past December since finishing her degree in August, and we found stability finally, and since it created stability but not much to begin to catch up on old debts we decided on the Ch 7 route. Well, wouldn't you know it, a little more than 2 weeks later and I get the job offer I've been looking for and dreaming of since IT went into the dark ages in 2000. Now we have questions:

If the trustee is made aware of the new job/income in the 341, can we be legally compelled to change to ch 13, or will the decision ultimately be ours? (aside from an involuntary petition being filed by a creditor)

What is the success rate on Ch7 dismiss petitions by debtors? I've read that it's rare, but since the BK courts are becoming swamped they might be more open to entertaining those petitions?

Is there any way that the Ch 7 might still fly given the substantial increase in income? I'm thinking that since student loan deferments/forbearances are now disolved now that I'm employed, and that our payments are now cranked up and take away a lot of the increased income, that we'll still fall within the Ch 7 guidelines (roughly $100 in disposable income).

Lastly, should we wait until the 341 to spring this on our Trustee, or should we file income and payment amendments immediately?

I thank anyone/everyone in advance for your input on this matter.
 


bigun

Senior Member
I'd suggest you spring this on your attorney now. If you don't have a lawyer, use some of this new found income to get some representation. You no longer have a routine run of the mill bk.
 

Ladynred

Senior Member
First of all, Debtor's cannot dimiss a CH 7. The Trustee can file a motion to dismiss if you wind up with too much disposable income and then you'd have a choice - convert to a Ch 13, which is VOLUNTARY (at least for now) or let the whole thing be dismissed.

With that new law likely to be passed in the House tomorrow, no way I'd let a case that's already been filed be dismissed. Better to live with a Ch 13 for 3 years under the current laws then be put into chains for FIVE years under the new law.

Follow Bigun's advice ASAP. If you're disposable income will still be borderline, then you may need to re-visit what you listed for your expenses.
 

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