Chapter 13 - 3 or 5 year plan?

[toff34]

I've planned from the start to see at least 2 different attorneys to get make sure I'm doing this right.

After looking at my information, she said that I was going to be stuck in a 5 year plan no matter what. My yearly salary is $76,000 and I am getting a sizable bonus being paid out in Feb 23rd. I guess this pushes me over the limit to be in a 3 year plan (4 person family, Indiana).

Does this sound right? I have a meeting with the 2nd attorney this week and Im hoping for better news.

[despritfreya]

If your average income in the 6 months prior to filing puts you over median income for a family of your size then your commitment period is 5 years so. . . yes, you would be stuck in a 5 year Chapter 13.

What about filing in February? Your six month window will be August, 2016 through January, 2017 therefore the February bonus won't count. Will that take you below median?

Des.

[toff34]

It would be close. Does it make a difference that it is a yearly bonus that is volatile with no guarantee on how much?

[LadyInTheRed]

It would be close. Does it make a difference that it is a yearly bonus that is volatile with no guarantee on how much?

No. Your commitment period is based on the gross income you received in the 6 months before the month in which you file.

[eich74]

Yeah you need to file in February. When I filed 3 years ago, my lawyer pushed me to file in February because I too receive a large bonus in February of each year (23rd this year too, wonder if it is the same company, starts with a U). Anyway, he told me if I waited until March they would have to include my bonus in the 6 month income figure, which would have pushed us into a 5 year plan. Also, said I would have to turn the bonus over to the courts. Ending up filing on Feb 27th. If memory serves me right i also received my tax refund in February that year too and I would have had to turn that over if I filed in March.