Question: I filed for bankruptcy in feb 2009. I might be offered a job in the near future for 10 months. The job will be full time and i would be making 25 dollars an hour. I am supposed to be discharged in the Nov 2009. How is the job going to affect me. Will the bankruptcy period be extended even though the duration for the job is only 10 months or maybe even less than that. Also what surplus income would i be owing the creditors ( i have declared a 2 person family when filing)…..thanks in advance;)
Answer: Here’s an article that explains in detail how to calculate surplus income. In simple terms, each month you send the trustee proof of your income (paystubs) and allowable deductions (child care receipts, medical expenses, etc.) and the trustee compares your next income to the allowable limit for your family size. If you are over the limit, you pay half of first $1,000 you are over, and 75% of the remainder.
If you have significant surplus income, it is possible that a bankruptcy will be extended longer than the minimum nine month period. Your trustee will determine whether or not an extension is warranted. In your case you have already been bankrupt for four months, and your new job perhaps won’t start until month five or six of your bankruptcy, so given the short period of time you are earning the extra income, and the temporary nature of the job, it is possible that your bankruptcy will not be extended.
However, we suggest you discuss this with your trustee immediately, so that you are prepared for whatever will happen.