What If I My Luck Changes Before I Am Discharged From Bankruptcy?
Most people go through the process of filing for bankruptcy because they reach a point where they cannot cope with the mountain of debt before them. The problem is often caused by unemployment of either one or both breadwinners in a family and the prospects of future employment in the short term are remote. For many, this is the case. For others, things change.
It can be amazing how much of a change comes over someone when suddenly the weight of all this debt is removed. Bankruptcy brings an end to constant harassing letters of demand, phone calls and perhaps even debt collecting visitors. With this removed, their outlook on life becomes more positive and with it a renewed vigor. They start applying for more jobs and have a better approach when being interviewed.
I am sure you can imagine that scenario, especially if you have been through similar situations. So what happens if your luck does change and you are offered a well paying position? What happens if you are still going through the bankruptcy processes?
For Chapter 7 petitions, if your ability to repay debt changes before you have been discharged then the process may well stop while your financial situation is re-assessed. For Chapter 13 petitions, your new income may be factored into your negotiated payment arrangements. Do you need to tell the trustee about your change in circumstances? Most definitely yes. Likewise, if you were employed and lose your job, you need to advise the trustee.
These changes in circumstances alter your ability to repay your debt. By employing the services of an experienced bankruptcy lawyer you can ensure that your rights are fully protected when your circumstances change. Bankruptcy is a serious position to be in – legal help is the only way to ensure you cover all bases throughout the process.
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