General Question

[tadbitconfused]

My husband gets a bonus once a year which we take home about 5000.00 will the trustee take this from us? When they look at our returns will they determine our payment by that which includes our bonus on it?

[MajorMike]

It is income, so it will be probably averaged out over 12 months and included in your previous 6 months income as forcasted income which will determine your disposable income. ( about $400/mo ) Our attorney took last years wages and averaged it out over the 12 months because we're commissioned and then added into our last 6 months of wages to determine our disposable. Everyone does things differently, and if you don't include that in your annual income, then your trustee asks for tax returns and sees the increase, he will raise your payment and have you make up the previous year that you didn't pay it. ( not DEFINITELY but likely )

[lrprn]

Plan your Ch 13 filing so the bonus is *NOT* in the previous six months income. That solves your six-month income calculation problem.

Now after you file, then the yearly bonus could be taken by your trustee. Depends on the local customs of your court and the habits of your trustee.

Your lawyer can give you an idea if you might get to keep or have to surrender he bonuses to your trustee after you file Ch 13.

[MajorMike]

Irprn....ditto! ( she is so good! )