Chapter 13 and future Bonuses

[Skipper]

Hi HHM and all,

Can you (or others) comment on any effect this ruling may have on future "one-time bonuses" that a Chapter 13 debtor may receive?

More specifically, I plan to file for Chapter 13 in the next 30 days. The job that I have does not (and has not) paid a bonus of any sort. However, there is a strong possibility that in the next 24 months the company may go public, and as a result, each employee will get a one-time bonus in the 10-15k range.

I know this is probably a question for my attorney, but I will ask anyway; when a debtor has a one-time bonus that adds to that years W-2 (as a result of the above scenario), does a Trustee normally recalculate the DMI going forward based on the previous years W-2?

Thanks in advance for any insight you all may have.

Skipper

[HHM]

Skipper, to keep the Lanning topic on point, I moved your post and created it as its own topic. There are numerous posts on this topic already. But to answer your question, the Lanning opinion would not effect how future bonuses affect a chapter 13. Especially in your case where the company has no history of giving bonuses, then there is no basis to plan on it.

Bottom line, if there is increased income during a chapter 13 plan term, the trustee has the option to increase the payment. HOWEVER, it almost never happens. The trustees are busy enough with an existing case load to worry about someone who has already been confirmed and is making payments.

[Skipper]

Skipper, to keep the Lanning topic on point, I moved your post and created it as its own topic. There are numerous posts on this topic already. But to answer your question, the Lanning opinion would not effect how future bonuses affect a chapter 13. Especially in your case where the company has no history of giving bonuses, then there is no basis to plan on it.

Bottom line, if there is increased income during a chapter 13 plan term, the trustee has the option to increase the payment. HOWEVER, it almost never happens. The trustees are busy enough with an existing case load to worry about someone who has already been confirmed and is making payments.

Thank you for your thoughts, and sorry for the off-topic question...

Skipper