Great timing - I think my DH is getting a bonus and we are about to file

[indebt00]

I am waiting to hear what the lawyer says but....my DH was supposed to get a bonus back in Feb...and was told no bonuses this year. ok...fast forward to now...the company has decided to award bonues on the 2008 performance. its going to be 2-3,000 net. we dont' know exactly when the payouts will be...we are guessing some time in the next month.

well we were about to file in a week or so. So do we delay filing and spend the money (on bills, house, etc) or do we file and live on it????
at first the lawyer said maybe we should just file since it could be weeks away....then I questioned that idea and am waiting to hear back from him..
will the court take it?
so if we file....then get bonus...spend it on bills...will it matter? We just got an appraisal for our lien strip and we are all ready to file.

do we wait to file? help.....what do you guys think?

[liz417]

Do you have any exemptions you can use to save the bonus? I'd say go ahead and file now because they are going look back the last 6 months Jan-June paycheck stubs.

[Trixie007]

I have a 3500 com check coming in about two weeks (before the 341) - we exempted it. At the time of filing I knew I would get this "some day", then within a week of filing found out that it's on its way shortly! Our attorney said he will want a copy of the check and will inform the trustee when it arrives, but it is exempt so he can't have it. Amazing timing, after taxes and tithe we'll still have 2100 to start an emergency fund!!

[13inIN]

Keep in mind that the 6 month thing is only for the means test. The term going forward for repayment is "projected disposable income" which relates to future and gets you into Schedule I and J to determine repayment. I also had the same "luck" and got promoted and a bonus after filing. While the case drug through objections, etc. I also found out that my daughter would need braces shortly and a few other unexpected twists. I did a lot of research on the bonus and salary changes along with our attorney and determined that the only way I was going to get confirmation was to disclose. So, I adjusted our schedule J accordingly and packed a few bucks wherever we could wedge them them, showed my new salary (+18k from what means test said) and the potential of bonus(~15k). We found very few cases where folks were allowed to keep bonuses and they were never in the amounts above 2 or 3 grand. The only exceptions were those in 100% payback plans.

I would say file and save the money. About the worst thing would come out it is that it gets sniffed out and you have to pay it in to the plan. I just have to keep reminding myself that it IS my debt that I'm repaying as I hand over my bonuses. I still have my fingers crossed that I can get out early.

[sharina]

so, Chapter 13in IN, did your confirming order say that you had to turn over any "excess" funds? What percentage of payback were you set at? I am assuming that your payback % increased as you handed over bonuses and such.

[indebt00]

I am a little confused...

they look back 6 mos from the date of filing? or from the date the trustee reviews your file...which could be any time this Summer, right? so they will see it in the year to date income???

what if we spend it? on bills and you know..living?

how would they even know you got a bonus if its in your YTD income?

how do we expemt it? I am really lost there?

so what if we just get the bonus and spend it...then file...will we get in trouble?

I am lost.....

[indebt00]

I think we should just file now as planned and then worry about the bonus when it comes.
it is not confirmed and DH employer has not officially announced...this is all talk at this point.....and not for sure.

what do you guys think?

[indebt00]

I have a 3500 com check coming in about two weeks (before the 341) - we exempted it. At the time of filing I knew I would get this "some day", then within a week of filing found out that it's on its way shortly! Our attorney said he will want a copy of the check and will inform the trustee when it arrives, but it is exempt so he can't have it. Amazing timing, after taxes and tithe we'll still have 2100 to start an emergency fund!!

how was it exempt?....thx.......oh just noticed you did ch 7....nevermind.

[lrprn]

Ask your lawyer what can be done - don't assume anything and don't do anything before you talk with him/her. Find out whether getting the bonus and spending it before filing is best or if the bonus can be exempted and you can file now. Your lawyer is most familiar with your case and knows how your trustee will react to the bonus and what's going to work in your unique situation within your local court's Ch 13 customs.

[13inIN]

Sounds like the lawyer was flopping back and forth according to the original post. Maybe for good reason, maybe not.

To answer your question, the final amendment to our plan stated that we would pay in the net amounts equal to bonuses received during the life of the plan. My district doesn't give a % payback report this early. From what I understand, that will only really matter if I fully payoff, or reach 60 months and see the audit reports.

[detroit9]

Always the best advice below. My personal experience had me having a fairly large, unexpected bonus being direct deposited into my bank account on the day we filed.

My attorney had the bonus expempted so it turned out to be no issue. Also, since he argued, rightfully so, that bonus' are not guaranteed, they should not be written into the plan so as long as there isn't a huge increase in bonus throwing off my overall wages (yeah, in this economy) I should be able to keep my future bonus. .

Good luck.

Ask your lawyer what can be done - don't assume anything and don't do anything before you talk with him/her. Find out whether getting the bonus and spending it before filing is best or if the bonus can be exempted and you can file now. Your lawyer is most familiar with your case and knows how your trustee will react to the bonus and what's going to work in your unique situation within your local court's Ch 13 customs.

[indebt00]

Always the best advice below. My personal experience had me having a fairly large, unexpected bonus being direct deposited into my bank account on the day we filed.

My attorney had the bonus expempted so it turned out to be no issue. Also, since he argued, rightfully so, that bonus' are not guaranteed, they should not be written into the plan so as long as there isn't a huge increase in bonus throwing off my overall wages (yeah, in this economy) I should be able to keep my future bonus. .

Good luck.

We have talked to the lawyer and he said it would help to have a time frame...well we can't give that because we can not verify that my DH will even be getting one. we honestly don't know...it could just be upper mgmnt....its very vague at this point.

I need to ask him specific questions...and he answers...

so should I ask him if we can exempt it in the case we even get one???

thanks...I didn't mean to imply I was doing ANYTHING without his guidance...we do what he tells us.

[indebt00]

Ask your lawyer what can be done - don't assume anything and don't do anything before you talk with him/her. Find out whether getting the bonus and spending it before filing is best or if the bonus can be exempted and you can file now. Your lawyer is most familiar with your case and knows how your trustee will react to the bonus and what's going to work in your unique situation within your local court's Ch 13 customs.

I think at this point we are wondering how long to put off filing...I think thats why he keeps asking me if we know WHEN its coming...I told him honestly...we only "heard" some were being given and we don't have any idea if we get one. so hard to decide on that.

We are basically ready to file now....so I don't know what to do

[lrprn]

[COLOR="Indigo"]I think at this point we are wondering how long to put off filing...I think thats why he keeps asking me if we know WHEN its coming...I told him honestly...we only "heard" some were being given and we don't have any idea if we get one. so hard to decide on that.

Ask your husband to call his company's HR or Finance department to find out if the bonus is a rumor or not. He doesn't have to say he's thinking of filing bk....just that he's making "financial plans" and this bonus is important to those plans.

He should be able to find out (1) if the bonus is real (not just a rumor) and if the bonus is real, than (2) approximately when the bonus is planned to paid out.

[indebt00]

Ask your husband to call his company's HR or Finance department to find out if the bonus is a rumor or not. He doesn't have to say he's thinking of filing bk....just that he's making "financial plans" and this bonus is important to those plans.

He should be able to find out (1) if the bonus is real (not just a rumor) and if the bonus is real, than (2) approximately when the bonus is planned to paid out.

I know this is how it SHOULD be...but it isn't. He can not ask HR...its a mgmnt decision....and all he has gotten is "I don't knows" from everyone. This is just how things go at his job...it is an unknown at this point.
we are filing at the end of next week I think unless we hear something concrete.

the lawyer thinks we should file if this is not happening for a while. sometimes his answers are vague...and I know that is for a reason...but usually I can find out the juicy details HERE. ;)

ok...does anyone know...what happens if we get it after we file? and we use it to pay bills? what happens?

if you guys have suggestions throw them at me. Lets assume he is getting the bonus in the 4-6 weeks...WHAT DO WE DO ???