You will need to qualify under the means test which takes into account your average income for the past 6 months.

Answer Applies to: Washington
Replied: 1/19/2012

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While there is a qualifying test that measures earning potential based on past income, one's present, pending and certain foreseeable income also affects one's eligibility. It ain't black and white. Therefore, the new job-like all material financial variables-certainly affects the equation. However, eligibility is not strictly a function of income, it's a function of income versus expenses (or rather certain expenses). Having "decent income" per se definitely does not bar one from qualifying for chapter 7. Acting in good faith means not putting earnings on hold in order to qualify for bankruptcy. Don't shoot your foot off. Postponing, rejecting or concealing the job would be fraud/or a manipulation of federal debt relief-a privilege, not a right. Consult with qualified counsel to steer you in the right direction with this relatively nuanced fact pattern. This answer (as well as our Web site) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it's independent of other answers.

Answer Applies to: California
Replied: 12/10/2011

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Bankruptcy petitions contain forward *and* backward looking income profiles. For example you must establish average gross income in the 6 months *before* filing, as well as what you expect to make *after* filing. The point is to keep debtors from filing bankruptcy during a downturn then rebounding and taking all their prosperity with them. If your future income might be markedly different from your income over the past 6 months, and if there are no other factors driving you to consider filing right away, then you might wish to wait for your income to stabilize before deciding whether to file. But the best choice is to speak with a knowledgeable practitioner in your area who can advise you on a real-time basis.

Answer Applies to: Illinois
Replied: 12/2/2011

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As long as your income is below the median income (for your household) required to qualify for a chapter 7, your job will not change your situation. If your income is higher than that median income, you have to pass the means test in order to qualify for a chapter 7 bankruptcy. The means test deducts specific monthly expenses from your "current monthly income" (your average income over the six calendar months before you file) to arrive at your disposable income. The higher your disposable income, the less likely it will be that you will qualify for a chapter 7. I hope you found this answer useful.

Answer Applies to: Florida
Replied: 12/2/2011

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Sooner is probably better than later. The income numbers can be tricky when they change. You will have "means test" issues.

Answer Applies to: California
Replied: 12/2/2011

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Whether you start before or after will not effect the ultimate question which is whether or not you can afford to repay your creditors after taking care of your normal monthly expenses. If you have money left over each month, then the US Trustee may see your case as an abuse.

Answer Applies to: Texas
Replied: 12/1/2011

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How much you are making may affect your eligibility for bankruptcy relief.

Answer Applies to: Michigan
Replied: 12/1/2011

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Your income is based on the average of the last 6 months not your income from a month on your new job.

Answer Applies to: Florida
Replied: 12/1/2011

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Yes, it may affect whether you qualify for Chapter 7. But there is no advantage to waiting. You can find out immediately what your status is going forward.

Answer Applies to: Ohio
Replied: 12/1/2011

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Bankruptcy looks at your last 6 months of income, so if you just got a new job, you may want to file immediately to discharge your debt before you don't qualify anymore. So if you were unemployed for 5 months and working for 1 month, your 6 month average would be very low and should be able to qualify.

Answer Applies to: New York
Replied: 12/1/2011

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Take the job. The economy is crap and you're lucky to have it. Check with an attorney, but you should probably go ahead and file and reflect the job in your paperwork. The odds are greater that it will not be a problem in your BK than it will be a problem.

Answer Applies to: California
Replied: 12/1/2011

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Whether or not the income from the job will disqualify you from Chapter 7 depends on the amount of income, dependents, expenses, etc. so you need to consult with a lawyer to see if you do not have too much income left considering the income you will be receiving. It might be easier to make the calculations after you get your first paycheck.

Answer Applies to: California
Replied: 11/30/2011

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A change in income obviously affects what you can and should file. Instead of guessing, see a lawyer.

Answer Applies to: Georgia
Replied: 11/30/2011

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Your income at the time of bankruptcy helps determine your eligibility for chapter 7. There is a calculation called the means test. If you have disposable income enabling you to play all or part of your creditor's claims you may have to file a chapter 13 payment plan. Consult an attorney as to whether chapter 7 or 13 would best serve your needs.

Answer Applies to: California
Replied: 11/30/2011

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Yes, if your income has changed since you initially contemplated filing for bankruptcy, your ability to qualify to file for Chapter 7 bankruptcy may be adversely affected by the new job. Consult with your attorney. He / she should be able to run the numbers and determine if the job will disqualify you from filing for Chapter 7 bankruptcy.

Answer Applies to: Texas
Replied: 11/30/2011

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Your new job MAY affect your bankruptcy eligibility, particularly if you gain disposable income that you can use to pay your bills. Timing is everything in bankruptcy. You may wish to file before you get the job or at least consider your options.

Answer Applies to: Indiana
Replied: 11/30/2011

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It may have an impact. It depends on your income, budget, and type of debts. Consult with an attorney who can look at your entire situation so you can make an informed decision.

Answer Applies to: Colorado
Replied: 11/30/2011

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