Legal Question in Bankruptcy in California
is after earned income payable by the bankrupt?
After the commencement of bankruptcy is any income earned by the bankrupt subject to become property divisable amoung creditors and how do recent proposed bills effect this?
Asked on 4/20/98, 5:04 am
1 Answer from Attorneys
Mark Markus
Law Office of Mark J. Markus
Is "after-earned" income payable...REPLY
No, income earned after filing a bankruptcy belongs to the debtor and not the bankruptcy estate. Exceptions are Ch. 13 and 11 cases where the income is being used to fund a Plan (in which case the income is still not property of the bankruptcy estate, but must be used to effectuate the plan for obvious reasons). No changes to this provision in the proposed laws that I am aware of. It would defeat the whole purpose of the "fresh start".
Answered on 5/05/98, 10:22 pm
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