10% income increase question.

[95kindebt]

We're filing in october. If my husband gets a disbursement from the LLC, in December (year end) and it's under the 10% increase of income we don't have to disclose it correct?

So the 10%, is it the 10% of income declared on filing date the 6 mo x 2 for the 12 months prior, is it tax year, or some other number?

Any help is GREATLY appreciated.

[optimistic1]

I dunno, what has your trustee stipulated?

[95kindebt]

we haven't filed yet. We are just wondering, trying to make it the most worth our while (when to file etc)

[HHM]

This is a district by district thing so no one here can tell you what you need to do. Many trustees will have an information sheet they give debtors.

Keep in mind, the rule is, the debtor is to devote ALL disposible income to the chapter 13 plan.

If you haven't filed yet, this is sort of moot. If you get the 10% in and file in the next 6 months, it becomes part of your 6 month look back of income and will be caluculated as part of your gross income.

[aa06a47]

As HMM stated, it appears district by disctrict. I received 2 bonus checks since my chapter 13. Both times, I contacted my attorney and she said the trustee said it was ok to keep them (Both of them under 500 bucks so that may have been why he wasn't too excited about them...honestly, I'm not even sure she asked the trustee because she replied quickly to my email about them).

If your using an attorney, ask him or her what to do with the bonus. If it is large enough, the trustee will probably want at least part of it. If it is small, he probably won't want any. Keep your conscious clear though.

Your about to embark on a 3-5 year adventure with the trustee control over your finances. Since you have not filed yet, I would try and get a plan that will allow you some wiggle room so the temptation to "cheat" is less important. I truley believe those who are given a plan with room in the pants have less reason to want to cheat than those who are not.

While the term devote all disposible income seems so black and white, the way it is calculated from trustee to trustee seems so impossible to decipher. Why are some told to eat romain noodles while others could eat out at the steak house twice a week?

Is the trustee going to catch you if you keep your bonus...probably not. It is just how big of gambler you are. I however do believe your chances of getting "caught" are biggest your first year or two in the plan. After that, I really get the feeling (just gut feeling, nothing legal about this) all they care is you make your payments on time.

[95kindebt]

we're just trying to decide if we should hold off and file, until after the 1st of the year. We're talking about 10k. I have no intention of hiding it from the courts, or the trustee. we kinda want to know if we should get excited about getting it (and getting to keep it) or plan on handing it totally over.
our imcome on our Income tax return was 110k, which is why my original question was about the 10% coming from what figure.
Thanks for all your iput.