After Filing - What happens?

[Walnut]

I am getting a merit raise on January 26. We intend to file on January 29. For income calculations, does the Trustee take the prior six months average (prior to filing date) or do they continue to require paystubs and bank statements between filing and discharge? I already presume we will need to submit a tax return for 2006. What if we get a refund?

[CATCHMEIFYOUCAN]

Walnut

I am getting a merit raise on January 26. We intend to file on January 29. For income calculations, does the Trustee take the prior six months average (prior to filing date) or do they continue to require paystubs and bank statements between filing and discharge? I already presume we will need to submit a tax return for 2006. What if we get a refund?

Hi, welcome to the forum, I'll just tell you what I've experience, and others will chime in! The Trustee usually takes the average of 6 month worth of paystubs prior to filing (gives them a snapshot of your financial picture). He can request more if he wants too. Be prepared to submit your tax files from 2006 (he may or may not ask for it), be prepared to give up a portion if you get a refund (he may or may not).

Good Luck, Catchmeifyoucan

[SinkingFast]

I am getting a merit raise on January 26. We intend to file on January 29. For income calculations, does the Trustee take the prior six months average (prior to filing date) or do they continue to require paystubs and bank statements between filing and discharge? I already presume we will need to submit a tax return for 2006. What if we get a refund?

Nope. You won't need any additional pay stubs after you file. Our attny had us bring a print out of our bank acct up thru the day we filed to our 341 but that was it. Paystubs were all as of the day we filed.

The day you file sets the BK Estate. What happens after filing day is no concern of the BK Court.

[lrprn]

The day you file sets the BK Estate. What happens after filing day is no concern of the BK Court.

We filed Ch 13 so maybe that's why it's different, but our trustee asked us to bring the two paycheck stubs we each received *after* filing with us to our 341. However, he never asked for them, and we didn't volunteer them either

[IN-DEBT]

pay stubs

We filed chapter 13. Our trustee asked for two additional pay stubs after filing and to the date of our 341 meeting. He looked at these and never did give them back putting these in our file. I don't know what he did with them but we were confirmed 2 months later. I felt that he wanted to make sure that we were not hiding anything in our salaries. They also asked for any bonus information and when these would be rec. My wife does not bouns but I do. They never once told us if they are taking my bonus which usually comes in March. The papers say nothing about this. They do clearly state the trustess gets anything over 1500.00 in tax refund but goes on to state that we can ask for the remainder if we can show a good cause for it. I felt that was strange that they left the door open for the extra. Heck, I felt it was strange that I get to keep the first 1500.00.

[SinkingFast]

Yeah,........... Ch 7 is different than Ch 13 in that respect. Ch 7 filers, the BK Estate is set the day of filing. Ch 13 filers live in the BK Estate for the duration of their plan.

As far as your raise, that's generally one of the Trustee's questions at the 341. "Do you anticipate any increases in income?" You're probably gonna have to tell about the raise then.

If your Merit Increase isn't any more than Cost of Living based, 3%-4% or so, it probably won't be an issue. If you were close to the Median when you filed and the raise might throw you over the Median, that could be a whole different story.

[JollyGG]

We filed chapter 7 the day before my husbands payday, three days before my payday. The trustee did ask for our paystubs from those paydays. Our lawer said that the trustee will consider that income as part of the BK estate as it was income earned prior to filing. That paystub was not part of our income calculations, but was an asset we needed to exempt. However, this doesn't appear to be something anyone else has experienced so may not be a concern for you.

[IN-DEBT]

increased income

Yeah,........... Ch 7 is different than Ch 13 in that respect. Ch 7 filers, the BK Estate is set the day of filing. Ch 13 filers live in the BK Estate for the duration of their plan.

As far as your raise, that's generally one of the Trustee's questions at the 341. "Do you anticipate any increases in income?" You're probably gonna have to tell about the raise then.

If your Merit Increase isn't any more than Cost of Living based, 3%-4% or so, it probably won't be an issue. If you were close to the Median when you filed and the raise might throw you over the Median, that could be a whole different story.

The above from Sinkingfast is excactly what we we told with one key word added. And that was a "substantial" change in income up or down. I know this is a vague word as any change for one in our sitution may be considered "substantial"