Can I be paid to build a home for a client beginning some short time after the filing and not pay the money to the trustee?
Full Question:
Answer:
The answer will depend in part on contract dates, as the date the money was earned rather than received may be controlling. Debtors may retain income earned after filing for bankruptcy while using only assets held at the time of filing to pay past debts. However, in some cases, such as under Chapter 11, income earned after filing and before the case is closed will be included within the bankruptcy estate.
Please see the following portions of bankruptcy rules:
If, as provided by § 541(a)(5) of the Code, the debtor acquires or
becomes entitled to acquire any interest in property, the debtor shall
within 10 days after the information comes to the debtor's knowledge or
within such further time the court may allow, file a supplemental
schedule in the chapter 7 liquidation case, chapter 11 reorganization
case, chapter 12 family farmer's debt adjustment case, or chapter 13
individual debt adjustment case. If any of the property required to be
reported under this subdivision is claimed by the debtor as exempt, the
debtor shall claim the exemptions in the supplemental schedule. The duty
to file a supplemental schedule in accordance with this
subdivision continues notwithstanding the closing of the case, except that the
schedule need not be filed in a chapter 11, chapter 12, or chapter 13
case with respect to property acquired after entry of the order
confirming a chapter 11 plan or discharging the debtor in a chapter 12 or
chapter 13 case.
(2) Financial Information. Every individual debtor shall bring to
the meeting of creditors under § 341, and make available to the
trustee, the following documents or copies of them, or provide a
written statement that the documentation does not exist or is not in the
debtor's possession:
(A) evidence of current income such as the most recent payment
advice;
(B) unless the trustee or the United States trustee instructs
otherwise, statements for each of the debtor's depository and investment
accounts, including checking, savings, and money market accounts, mutual
funds and brokerage accounts for the time period that includes the date
of the filing of the petition; and
(C) documentation of monthly expenses claimed by the debtor if
required by § 707 (b)(2)(A) or (B).
(3) Tax Return. At least 7 days before the first date set for the
meeting of creditors under § 341, the debtor shall provide to the
trustee a copy of the debtor's federal income tax return for the
most recent tax year ending immediately before the commencement of the
case and for which a return was filed, including any attachments,
or a transcript of the tax return, or provide a written statement that
the documentation does not exist.
