If I find employment prior to filing bankruptcy, or after I file bankruptcy, will this pose a problem?

Blog

Sep 21

No. We want our clients to be able to earn as much as possible and part of our job is to make sure any income you have is protected.

The amount of income can affect your case, depending on the chapter you are filing under and the amount you are earning. In Chapter 7 consumer cases, your income is factored into what is known as the means test. The means test compares your household income to the median household income for a household of your size. The resulting calculation may determine whether you are eligible for a discharge of debt under Chapter 7.

However, there are almost always ways by which a debtor may pass the means test or make it completely inapplicable. Rarely would you want to lower your income because of the means test.

In Chapter 13 cases, your income is one of the factors used to determine how much should be paid to your unsecured creditors. There are many factors that go into this determination, however, so we would rarely want to see you reduce your income.

The best advice we can give is to keep us fully informed about your employment and income status. We can then identify any issues and help you solve problems before they ever arise.