Changing job
December 5th, 2008 by Questions
What happens when during the bankruptcy period someone loses his/her job, gets a severance then finds a new job (while receiving severance), all this within a couple months before being discharged? Will the trustee ask for further repayment and object to the discharge? He/she has learned a valuable lesson about money management, but what now?
Posted from: Ontario
One Response to “Changing job”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
December 06, 2008 at 8:43 am, A licensed trustee said:
You probably won’t like this answer…
When you receive a severance package most trustees allow you to allocate the income to each of the weeks of the package thereby reducing your surpl;us income obligation. This works well for people that don’t immediately find a new job.
In cases such as yours if the severance was received as a lump sum payment then it is allocated to the period between your old and new job. In most cases this results in a significant surplus income obligation.
Yuo should go and speak to your trustee and see what can be worked out.