Question about Paid Time Off

[peaches37]

My hubby and I have begun the process of filing a chp 13 and his truck needs a new engine. He has the option of cashing out some saved up time so he can get his truck fixed. I'm not sure if the attorney or the trustee will get this money. I think it will just be added in with one of his paychecks. The question is, if they have set a set amount for us to pay per pay period, will he have to let them know about this extra money that will be added to one of his checks? I hoped this made since to everyone reading.

[liz417]

Yes, your question does make sense. My husband "cashed out" 2 weeks vacation pay and we are expecting that money the 1st week of Jan (). We intend to pay the balance of our ch 13 fees with this extra money and FINALLY file. I'm not sure, but the way I figure is that since we haven't filed, that extra $$ will be included in our 6 month average take home pay. If you've already filed, then that $$ money will show up at the end of next year's taxes, so I wouldn't worry about it.
I'm sure someone will come along that has experienced this situation.

[justbroke]

My hubby and I have begun the process of filing a chp 13 and his truck needs a new engine. He has the option of cashing out some saved up time so he can get his truck fixed. I'm not sure if the attorney or the trustee will get this money. I think it will just be added in with one of his paychecks. The question is, if they have set a set amount for us to pay per pay period, will he have to let them know about this extra money that will be added to one of his checks? I hoped this made since to everyone reading.

It depends. By having the money added to his gross income, it will make it look like he makes more money.

What you should probably do, is see if you can get a new car before filing. By new car, I mean a late model (but not current year) car on credit. You'll need a good dependable car to do a Chapter 13 for 3 to 5 years.

In the end, you don't have to let them know about extra money in the check. If you file in the month after receiving the check, it gets "averatged" into the current monthly income calculation (means test) anyhow.

[peaches37]

Well, we don't need another car. We just purchased a 2004 mini van and he is in love with his truck. Besides that we can't handle another car note. His is paid for. Our 13 won't acually be filed until Jan, so I guess he has to report it. She told us if we had planned anything such as car repairs, home repairs to just let her know so she can let the trustee know, so we will just let her know what the plan for his truck is. Thanks

[Flamingo]

My hubby and I have begun the process of filing a chp 13 and his truck needs a new engine. He has the option of cashing out some saved up time so he can get his truck fixed. I'm not sure if the attorney or the trustee will get this money. I think it will just be added in with one of his paychecks. The question is, if they have set a set amount for us to pay per pay period, will he have to let them know about this extra money that will be added to one of his checks? I hoped this made since to everyone reading.

Those funds will be treated as income and taxed accordingly by his employer and, therefore, increase your hubby's income for the year in which received. Mention this to your attorney before you proceed in doing anything and remember that your finances are under the control of your trustee from the day you file until the day you are discharged. Do not make any major financial moves during your Plan without consulting first with your attorney. It is quite possible under the circumstances that your attorney would consult with the trustee to see if he would be allowed to utilize that money for a much needed purpose.