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If you’re a seasonal worker, your attorney will look at what your income looks like now and what it looked like six months ago. If you’re a seasonal worker and you make quite a lot of money in one portion of the year, it may be best to file for bankruptcy before the start of that busy season. This will make qualification for bankruptcy more likely.
You can, though these are not the type of cases I would personally handle. Furthermore, managing Chapter 13 payments can be complicated if your seasonal income varies significantly from year to year.
For example, if your previous year’s average was quite low, the trustee will look at next year’s increased wages (through your tax return) and want your payments to be increased significantly. If you earned quite a lot last year, the trustee may demand high monthly payments that you won’t be able to manage if next year’s earnings aren’t as high.
As a result, it’s best to file for Chapter 13 if your seasonal wages are fairly stable and consistent from year to year.
It depends on your circumstances. If you’re a seasonal worker who isn’t earning very much at all, it won’t really matter when you file.
However, if you’re a seasonal worker who earns quite a bit of money for one portion of the year and you’re hoping to file for Chapter 7, it would be best to file before the start of your busy season, as the courts will look at your previous six months of gross income to determine if you qualify.
Attorney Alec Solomita is a well-respected, diligent bankruptcy attorney serving Florida. Since 2007, he’s helped clients just like you navigate bankruptcy as a seasonal worker, helping more men and women get out from under debt and move forward with a far better financial outlook.
Have questions, or in need of legal guidance? Reach out to Solomita Law, PLLC for an initial consultation today.
The courts don’t care about inconsistent income to the extent that many people assume. When you file for bankruptcy, you’ll propose a repayment plan that will be in effect throughout the length of the bankruptcy. While you could, in theory, agree to pay more during busy months, it’s best to keep your monthly amount consistent, in amounts that you can afford to pay back each month.
The most important factor is whether what you say you earn aligns with your pay stubs and tax returns. If these metrics aren’t consistent, the trustee could amend how much you pay, making things more complicated. The most important factor, however, will be putting forth a repayment plan that you can make each month, whether you’re earning a lot or a little during that season.
Many seasonal workers assume that the best time to file for bankruptcy is right when their busy season ends. However, the courts will examine the last six months of your income, and filing right after the busy season ends may impact whether you qualify for bankruptcy.
In reality, it is generally better to file right before the next busy season begins. This will even out the last six months of income, and until your six-month average is at an acceptable amount, you won’t qualify.
For more information on seasonal workers and bankruptcy in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 255-7458 today.
Attorney Alec Solomita is a well-respected, diligent bankruptcy attorney serving Florida. Since 2007, he’s helped clients just like you navigate bankruptcy as a seasonal worker, helping more men and women get out from under debt and move forward with a far better financial outlook.
Have questions, or in need of legal guidance? Reach out to Solomita Law, PLLC for an initial consultation today.
