Wait a month to file?

[jlasky]

I made a 10000 bonus in mid January and I was wondering if I should wait a month before I file? Without the bonus we make around 24,000 over median, but with our expenses and unsecured debt (Secondary presumption determination) it could bring us under.

[lrprn]

I made a 10000 bonus in mid January and I was wondering if I should wait a month before I file? Without the bonus we make around 24,000 over median, but with our expenses and unsecured debt (Secondary presumption determination) it could bring us under.

If you want to file Ch 7 and if you can wait another month, since you are already over the median the closer you are to the median, the better. I would definitely wait until after August 1 to file if you can. Even if you get pushed into a Ch 13, you will show less income and potentially lower your monthly payment.

Have you had free consultations yet with 3-4 bk lawyers to see where you might fall on the Means Test?

[SinkingFast]

The way income is calculated now, that bonus would be doubled if it falls within your 6 month CMI.

Say your regular earnings are $6K/mo x 6 months. That's $36K 6 month CMI or $72K/year.

Now throw in the bonus. $6K/mo x 6 months = $36K 6 month CMI PLUS $10K bonus. Now your 6 month CMI is $46K making your annual income $92K/yr. The bonus will be doubled even tho you don't actually receive that money again.

Even if you wait out the 6 month look back period on income, you may have to deal with the Bonus issue at your 341. Depending on the type of work you do, that may be a question the Trustee asks you at your 341. Our Trustee asked Hubby if he was entitled to receive Bonuses as a benefit of his position. So it can actually happen.

This is an issue that can haunt you either way you approach it. Just be aware that it can happen.

[jlasky]

Have you had free consultations yet with 3-4 bk lawyers to see where you might fall on the Means Test?

Yes I had a couple of lawyers, one says file a chapter 13 and he didn't even mention that we may be able figure it during a means test. One other one thinks we could file a chapter 7. So I am sticking with that lawyer. We are only late on one bill out of many. Do you think we should wait a month or does it really matter, since the 341 meeting might mention my bonuses?

If I do wait, should I pay for the retainer fee now or just wait until next month to pay for the retainer fee and file all at once? Other question, can I atleast pay one unsecured debt out of good faith since my work is affiliated with the creditor or just not pay it? I know all of these questions are conditional. I just would like some opinions... Appreciate the feedback.

[lrprn]

Do you think we should wait a month or does it really matter, since the 341 meeting might mention my bonuses?

The main reason for waiting is to keep your last six months income level as low as possible for Means Test.

If I do wait, should I pay for the retainer fee now or just wait until next month to pay for the retainer fee and file all at once?

Your lawyer won't run the Means Test so you can find out whether you really do qualify for Ch 7 until after you've paid the retainer.

can I at least pay one unsecured debt out of good faith since my work is affiliated with the creditor or just not pay it?

It depends on the amount you want to pay your unsecured creditor. If it's less than $600 total during the 90 days before you file, then that's fine. If it's more than $600, then your trustee can go after that money as a preferential payment and force the creditor to return it so it can be distributed equally between all your creditors. How much do you need to pay on this debt?

[jlasky]

Its around $300 dollars...

[SinkingFast]

Here's a link for you:

http://www.legalconsumer.com/means-t...ator/index.php

It's a Means Test Calculator. It'll give you a good idea of where you stand.

Plug in some info and it will give you a result. You can run your income both ways. With the Bonus and without it to see how it comes out.

If you seriously think you're gonna file BK, there's no need to pay any Creditor you plan to Discharge any more money. You'll just be flushing money down the toilet.

And, as Lrprn noted, if you pay any Creditor $600 or more within 90 days prior to filing, the Trustee can go back after the money. Which, as one attny explained to us is no big deal for you as the Filer. It's between the Trustee and the Creditor. But as another attny explained to us, Preferential Payments slow your BK down.

The Trustee tells the Creditor(s) they have to pay back the money. Once the Trustee collects up the money, the Trustee notifies all your Creditors there's Asset money available. Creditors have something like 60 days to file Claims. Then the Trustee decides who's gonna get how much, pays everyone, and performs a Final Audit of your case. It's just extra time your case is held in BK limbo.

Paying some and not others is dangerous too. When you start skipping payments, Creditors start pulling your Credit Reports. They look to see who all you owe how much to. And if you're paying others while not paying them. Paying some and not others can push any of your Creditors to move toward legal action much more quickly than they would otherwise.

There's no guarantee one way or the other whether you'll be asked about Bonuses at your 341. We were the only ones the Trustee asked that question. Possibly because Hubby is a "professional" and other Filers there that day weren't. There really is no rhyme or reason to what questions, other than the routine ones, the Trustee will ask you. Trustees ask questions specific to each Filer's situation.

[freshstart06]

I was told that bonus and commission was split divide by the 6 months, it is unrealistic for it to be calculated double the income when you did not enjoy double the income.