When the opportunity for a new job comes along, you certainly don’t want to pass it up especially if you have been struggling financially. If you have filed for bankruptcy, a new job can be a way to help you move forward and avoid future financial difficulties—this is particularly true if unemployment is part of the reason you needed to file for bankruptcy in the first place.
While a new job can be exciting, it is important to know that it can have an impact on your bankruptcy. Though this certainly doesn’t mean you should pass up a new work opportunity, knowing how a new job affects bankruptcy can help you be prepared so you are not surprised if things with your bankruptcy change due to your new job.
How a New Job Can Affect Your Georgia Bankruptcy
Getting a new job means getting new income and your income plays a large role in your bankruptcy. If you file for a Chapter 7 bankruptcy, you must pass the Georgia Means Test. This test looks at your income within the last 6 months—to file for a chapter 7 bankruptcy, your average income must be less than the median income in the state of Georgia. If it is above the median income, you can still file for a chapter 7 bankruptcy if you don’t have enough disposable income to pay all your debts after your monthly expenses.
If you get a new job, this could impact your Chapter 7 bankruptcy because you now have a new income. If your job is high-paying, this could change your six-month income average and put you above the median income. If you qualified for a chapter 7 bankruptcy because you did not have enough disposable income, a new job could mean you now have enough disposable income and thus you would no longer qualify for a Chapter 7 bankruptcy. If this is the case, your bankruptcy could be changed into a Chapter 13 bankruptcy.
A Chapter 13 bankruptcy is a debt repayment plan. With this type of bankruptcy, you put all your disposable income towards paying off your debts over a 3-5 year period. If you no longer can file for a Chapter 7 bankruptcy because of your income, you may still be able to use bankruptcy to better your financial situation by changing to a Chapter 13 bankruptcy. A new job can still have an impact on your Chapter 13 bankruptcy as well. Monthly payments are based on your disposable income. If your new job increases your disposable income, the bankruptcy court may require you to increase your monthly bankruptcy payments too.
Talk to an Experienced Atlanta Bankruptcy Attorney
If the timing of your bankruptcy and a new job coincide, it's best to talk to a skilled Atlanta Bankruptcy Attorney who can help you understand how your new job may impact your bankruptcy. Ultimately, both a new job and a bankruptcy can help get you on a path to a more secure financial future. You don’t want the new job to negatively affect your bankruptcy which can help you eliminate overwhelming past debt. If you are facing this situation, contact the Ballard Law group today—our bankruptcy attorneys have years of experience and can help answer your bankruptcy questions and help you determine what type of bankruptcy is best for your individual situation. Call us today at (404) 800-9939
to schedule your free consultation!