Expert: Los Angeles Bankruptcy Lawyer Leon D. Bayer - 8/17/2006

Question
My husband hasn't worked in 4 years.  He cooks, writes and plays music.  I don't have a problem with that but how can I file without the $1200.00 or so that it will cost?  He will agree to a part time just to dig us out. If you haven't worked and don't intend to, how is that fraud?
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Followup To

Question -
Hi, my husband and I must file bankruptcy.  He is a musician and also writes.  Both of those translate to no income.  We can't even afford to file right now.  If he were to get a part time job and then quit once we caught up on everything and saved the money to file can he then quit and how would that impact a decision on our bankruptcy?  I appreciate the time.


Answer -
The bankruptcy law examines all household income earned during six months prior to the month that you file your case, your projected income and your current and projected living expenses. This is done to see if you can really afford to pay some of your debts. Without a face to face meeting and detailed income and expense information from you, it is not possible to do more than make a guess as to how such a job would effect your ability to file bankruptcy.

A bankruptcy case can be tossed out by the court on the grounds of abuse of the bankruptcy law. I think the court could find a case of bad faith where a person deliberately quits a job just to make himself appear to be eligible for bankruptcy.

My guess is that you guys can still file with your husband earning the part time income, but that is merely an educated guess. Assuming I am right, he can quit the job after the bankruptcy is granted. To get a real answer, you will need a consultation with a qualified local bankruptcy attorney, and then you should be able to find out.

Assuming that a qualified bankruptcy attorney examines your case and advises that you can file, I think it would be more desirable for both of you if a viable stratagy can be developed that will allow your husband to keep the job and still file bankruptcy while he is working. It sounds like you guys really need the money, and (assuming that your husband wants to help shoulder some of the responcibility for meeting your daily living expenses) a part time job should still allow him time to pursue his other interests, wouldn't it?

Answer
You asked, " If you haven't worked and don't intend to, how is that fraud?"

I didn't say that is fraud if he doesn't work. But if he does take a job that pays enough money for you to pay your debts without filing bankruptcy, and then he deliberatly quits his job, it could be a problem. It is up to the court to decide if a given case is going to be denied on the grounds of abuse. I said the court "could" view a case as an abuse of the system, because IF someone deliberately quits a job that would have allowed that person to pay their debts. I also said that perhaps you will qualify for the bankruptcy even IF he is still working, and a local attorney should be able to determine that for you. Then, after the bankruptcy is finished, he migHt safely quit his job and nobody will care.