Meeting of creditors is next week, new job starts the week after. Income will go up about $1200 a month but after day care expenses and more gas money, actual take home money will only be about $600 a month. What could the court do?Let me clarify: Before I made $600 (after taxes) a month, now it will be $1760 a month (before taxes), but after daycare and more gas because of the job location, I will only bring home about $1100 (before taxes), instead of previous $600 that was on my bankruptcy filing.
What can happen if you tell the truth? The trustee will ask if you expenses will increase now that you are working, and if you expect to have any extra money at the end of the month. You will answer no, day care, transportation (not to mention clothes, lunch money, etc) will likely take everything extra the job provides. Then you get a discharge. This is not really an issue. Now if you were making an extra $6000 a month, it might.
It matters what your income is on the filing date, not a week after the meeting of creditors is over. I assume on the filing date of your petition, you didn't have sufficient money to pay your bills....if your petition reflects that, you should be okay.
Are you represented by a bankruptcy attorney? If so, the attorney should answer this question. If not, your question illustrates why a debtor should be assisted by an attorney rather than filing pro se or with a bankruptcy petition preparer. Your question does not give us the big picture of your bankruptcy case, so any answer is limited to the facts that you provide.
If your gross household income is only $1,760 per month, then you are eligible for a chapter 7 discharge based on step 1 of the means test. If there is no disposable income (money left over) after subtracting your reasonable and necessary household expenses from your net income, then an income-based objection to chapter 7 eligibility because on the "totality of the circumstances" under Section 707(b)(3) of the Bankruptcy Code is unlikely. As long as there is no basis to object to your chapter 7 eligibility, then the court, trustee or creditors are very unlikely to seek dismissal of the chapter 7 or conversion of the case to chapter 13 of the Bankruptcy Code.
With what's at stake, consulting with an experienced bankruptcy attorney licensed to practice in your state may be a good idea.
If you want to know more about the meaning of certain key words used in bankruptcy, see the federal courts' web site for a glossary of bankruptcy terms: http://www.uscourts.gov/Common/Glossary.aspx.
My law firm is a federally designated debt relief agency and helps people in Colorado file for bankruptcy relief under chapters 7 and 13 of the Bankruptcy Code.
I agree that your earnings on the date of filing, and your earnings in the six months prior to your filing, are the important facts. You should not be proceeding in bankrutpcy without counsel. While you are not legally required to have counsel, bankruptcy is complicated and the rules are very specific. If you have correctly completed your B22 (means test) documents, then you will probably be fine. And I also agree that you should tell the trustee the truth. You will be under oath. Good luck, and go hire a lawyer!
This general response is not intended to be legal advice because I don't have all the facts. The particular facts in each instance will change the recommendation significantly. Any statements made in your posting on Avvo are not protected by the attorney-client privilege because they are shared with third parties. I require a written contract for legal services, so an attorney-client relationship may not be presumed merely by my response to an Avvo posting.
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