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Spike in Income after Creditors’ Meeting

You've filed for Chapter 7 and the trustee has conducted your 341 Creditors' meeting.  After this meeting, but before your debts are discharged your income changes for the better.  Will this unwind your bankruptcy and prevent you from getting a discharge?

In most situations it will not.  When you file for Chapter 7 you are required to depict an accurate and forthright depiction of your current financial status.  If you anticipate an increase or decrease in income you are required to report this to the trustee at the time of filing.  If this was an unanticipated increase that does not drastically alter your eligibility under the means test, your discharge will likely be approved.

If you are considering bankruptcy, but are unsure of your future income, it is vital that you consult a seasoned attorney for an expert opinion.  Veteran bankruptcy law firm Fears | Nachawati possesses the skills and knowhow to guide you through this personal and challenging time.

Categories: Chapter 7 Bankruptcy
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