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Will Getting A New Job in Colorado After Filing Chapter 7 Bankruptcy Affect My Debt Discharge?

The purpose of filing a bankruptcy is to get a “fresh start.”  That is what Congress intended.

When a person files Chapter 7, its as if a picture is taken of that person’s financial circumstances on that very day.  If the next day, the debtor gets a great job, its does not get pulled into the bankruptcy filing  that means, creditors can not reach the new income, nor the bankruptcy trustee.

It’s a bit different with chapter 13.   Unlike chapter 7, debtors in chapter 13 must pay creditors what they can afford.   And that means, an increase of wages during the life of the plan may end up increasing the chapter 13 plan payments.  So, while a new job after a chapter 7 is filed is not an issue, a new job in Chapter 13 may mean higher plan payments.  

As long as we are talking about bankruptcy and employment, did you know that the bankruptcy code prohibits discrimination?  A present employer cannot discriminate against a debtor for having filed.  Likewise, the government cannot discriminate against you for having filed. The code section is 11 U.S.C. § 525(a) and (b).   

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