Bankruptcy Means Test

• The bankruptcy means test determines whether your income is sufficient to pay off your debts. If your income, minus your debts, falls below your state's median income level you are ruled eligible for Chapter 7 bankruptcy. The means test uses the average of your income over the six months prior to your filing for bankruptcy. Finding a new job while you are going through the bankruptcy process should not affect your ability to pass the means test.
  
  

Talk to Your Attorney

• Inform your bankruptcy attorney the moment your employment status changes. Keeping your attorney appraised of your employment situation can help him maximize your chances for a successful Chapter 7 filing by making sure all the appropriate information is updated with the court. If paperwork is filed incorrectly, and your new employment information is left out of your appeal for relief, the court may reject your bankruptcy on the grounds that you're attempting to conceal your true finances.
  
  

Court Examination of Finances

• Apart from the means test, the court may also comb through your finances to determine if your income is sufficient enough to pay off your debts. If the income level of your new position is high enough, and the court believes you may retain this position long term, the court may reject your Chapter 7 bankruptcy and recommend you file Chapter 13 bankruptcy instead. Chapter 13 bankruptcy allows you to restructure your debts into a three to five year payment plan supervised by the court. Debts are still expunged, but only after you successfully complete the repayment period.
  
  

Meeting of Creditors

• The 341 hearing, or meeting of the creditors, is scheduled after you first apply for bankruptcy relief. At this hearing you are required to answer questions from a bankruptcy trustee while under oath. Your creditors may attend this hearing and can submit questions to the trustee regrading your income. If you have a new job, you may be required to answer questions about your new source of income. It's important you answer these questions truthfully. Lying while under oath is perjury, which comes with a heavy fine and may land you in federal prison.