Yes, you can file for bankruptcy after starting a new job. No law prevents you from filing due to fresh employment. However, this chapter in your career may have variables that can affect the type of bankruptcy you can file. Understanding how a new job can impact your filing options is important.
Taking the Means Test for Chapter 7
If you are planning to file for Chapter 7 bankruptcy, it discharges unsecured debts such as credit card bills, personal loans and utility expenses. However, you must pass the Means Test to be eligible for this filing. This involves comparing your average gross income over the six full calendar months with the median income for a household of your size in Tennessee.
Filing as soon as you start working in your job might help. Because the six-month period may include a lower income, you may be eligible for Chapter 7. Waiting too long can significantly increase your six-month average, potentially disqualifying you.
Funding a repayment plan
Not qualifying for a Chapter 7 filing does not mean you cannot file for bankruptcy anymore. If you did not pass the Means Test, you will likely file for a Chapter 13 bankruptcy. Unlike Chapter 7, this option creates a three-to-five-year repayment plan that you need to settle with your disposable income. Having a new job can serve as proof of stable income, showing that you can realistically afford the payments.
Seeking further guidance on bankruptcy
Starting a new job is not a deterrent to filing for bankruptcy. However, it introduces new moving parts that require careful planning and calculation. To avoid minor oversights, seeking legal advice is advisable. A bankruptcy attorney can provide the guidance you need to navigate bankruptcy filings in Tennessee.