Questions re: C13

[Kingxray]

To make a long story short, our C7 isn't going so well and our lawyer asked us to consider a C13. I have no idea about what payments we will have and can't imagine how we can afford any since I lost my job. I see the lawyer on Wed.

Some questions I have are:
Does the trustee take our income tax returns?

Does the trustee take any bonuses my husband receives (we have already included them in our B22) or is that just considered part of our income? What if he doesn't get a bonus (which is likely next year)? How do they figure numbers like that when they are not guaranteed?

How do we save for Christmas, car repairs, household upkeep, ie: new stove? We usually use bonus checks as our emergency fund. Are we allowed to have one in a C13?

We live and work in Wisconsin if that helps. Thanks.

[rrockinggramma]

I take it you are high income earners or were or your husband is?

A chapter 13 is all about lifestyle changes and budget changes. It is much harder than a chapter 13 because you are forced to live within your means for a long time but the good part of it is that those changes that you make become so engrained in your head that after discharge you don't want to go back to the past lifestyle.

But it has to be a family committment.

I glanced at the Wisconsin exemptions and bonuses were not included in those so probably would have to be turned over but your attorney would know about all of that.

The look back period for income is 6 months so hopefully by the time you convert it will be 6 months since your job loss.

[sassiebaz]

Did you already file a ch7? If so, did you lose your job after that? Just trying to gather more info....

[Kingxray]

Thanks for responding. Yes we filed C7 for the second time. We dismissed the first one and tried again but they still are allowing some of our expenses. We already had our 341. I lost my job 2 months before filing for the second time.

Do you know if they take the whole bonus or let you keep some for an emergency fund?

Also, I suppose the trustee takes our tax refund as well?

Thanks for your input.

[andy158]

My Plan states that the trustee will take anything over $1500 in tax returns. I am adjusting my deductions so as not to have much if anything above the limit.

[Kingxray]

Good idea! I never thought of that. Thanks much!

[rrockinggramma]

wait however to change your withholdings until after confirmation otherwise you will defeat the purpose. Hopefully the other poster is a Wisconsin filer and the 1500 is what is the case for your state. In Michigan, they take it all (federal but we keep the state refund) but every state is different.

bonuses are whatever the local bk rules state. some allow to keep some don't just depends on your trustee and your local rules

[deerme]

I am also in S. WI and had to give half of my net tax returns to the Trustee. Both Federal and State.

[Kingxray]

Thanks for the input. I guess we have to strategize our timing of this now since my hubby gets a bonus in Oct and we get our tax return in Jan. I hope that is possible. Thanks again.