Been answered, want definite

[t&msmom]

I know this has been answered, but I want to know for absolute sure:

DH has a christmas bonus coming in sometime in the middle of December. As long as we file before his bonus comes in, it isn't in jeopardy of being taken, right? (It will be between $700-$800 I think.) We are making plans on what to do with it, and don't want to mentally spend it and not be able to actually touch it. (The kids need new booster seats, stocking the freezer, DH needs new work boots, kids need new pants/shirts, etc.)

[ssdsco]

I can't tell you absolutely but I'm pretty sure you'd want to file after you get the bonus and spend it all on the basic living expenses you mention. Keep the receipts.

I think this is similiar to the discussions on spending your tax return and then filing.

[aachudneymiles]

there is a few places you are suppose to put extra money that you know are coming to you... like bonus -money owned to you .. it has been said many times over on this board that any money any your account after filing date is not to be taken but .. i think of a bonus like a tax return because you know your getting it.. tax return trustee will take and thats after filing date. .. I would list my up coming bonus in my forms statement of affairs and so forth aswell as personal property and exempt it with a wild card or whatever you have in your state asfar as exemption .. good luck... or dont say nothing your choice,,

[PaKettle]

I know this has been answered, but I want to know for absolute sure:

DH has a christmas bonus coming in sometime in the middle of December. As long as we file before his bonus comes in, it isn't in jeopardy of being taken, right? (It will be between $700-$800 I think.) We are making plans on what to do with it, and don't want to mentally spend it and not be able to actually touch it. (The kids need new booster seats, stocking the freezer, DH needs new work boots, kids need new pants/shirts, etc.)

I'm not sure you can get a SURE answer on this board because it depends, I think, on things like what state you are filing in, how the trustee in your district views and does things, and so on.

If I were you, I would run this by your attorney. If you don't have one, run it by an attorney in a free consultation. Maybe someone here can give you a for sure answer, but I have my doubts.

I will venture a guess, though. I would think that if you use it for necessities like food and clothes, etc., and keep receipts, you can probably spend it after filing, but I'm not sure.

[t&msmom]

I have mentioned it to my atty and she said we "should" be fine. She keeps saying "Should" for everything, and it's driving me nuts. I feel, with the amount of $ I'm paying her, she should know for sure. We aren't 100% certain he's getting a bonus. Each year he has gotten one, but they said the company isn't doing well. Not sure how much of that is true. As far as "bonus", it is taxed...so is that a bonus, or just taxable as income and would go towards the 6 months of gross pay?

[genseeker]

We filed VA Western District. Hubby has been w/ his job 3 yrs now. The company usually pays a bonus around Thanksgiving but actually did layoffs this year. Rumors from the home office was that the only bonus would be the free ham they get every year. Until hubby actually received the check, the bonus was not his. The company could have processed checks and then decided to shred them. The bonus is not his UNTIL HE RECEIVES IT. I had asked a couple attys here before filing because I was worried myself. I was assured by each one that until you actually receive the check (or direct deposit) the bonus is not YOURS.

Also keep in mind that the income is based upon the previous COMPLETE 6 months. So if you file in Dec then income would be from June - Nov. But if you wait until Jan to file then income would be July-Dec.

[SinkingFast]

Genseeker makes a very good point.

There is no bonus until it's actually paid.

Evidently your Hubby had the bonus last year and it's reflected in reported earnings on your filed income taxes??!!

As PaK and Aachudney said, depending on the State you live in, you may have Exemption for earned but unpaid wages. Or a WildCard. You can check into your Exemptions as a possibility for covering the bonus.

Or,......... If it won't throw you over the Median by being doubled,...... You could wait until after the bonus is paid out to file. Spend the money on necessities as you have planned and be sure to save all your receipts.

Filing this late in the year,.......... I'd think your bigger concern is gonna be your income tax refund come next Spring. Trustees can take prorated amounts of your anticipated income tax refund. By filing in December, the Trustee could conceivably take your entire refund.

Be sure to check your Exemptions to see if you can cover part or all of what you might expect to get in tax refund.

[PaKettle]

I have mentioned it to my atty and she said we "should" be fine. She keeps saying "Should" for everything, and it's driving me nuts. I feel, with the amount of $ I'm paying her, she should know for sure. We aren't 100% certain he's getting a bonus. Each year he has gotten one, but they said the company isn't doing well. Not sure how much of that is true. As far as "bonus", it is taxed...so is that a bonus, or just taxable as income and would go towards the 6 months of gross pay?

Well, join the club, my attorney also says things like "should be fine". I think they all do. The reason, I think, is because a lot fhis bankruptcy stuff is left up to the judges and trustees and attorneys, it's not clear cut, there are many grey areas left open to interpretation and - unfortunately - to just the "whims" of the judge at your hearing or the trustee who may decide to audit your case.

That said, it does seem like your attorney should be able to give you a clear cut answer on this one! I think you should ask again, and when she says "It "should be fine", ask her "What do you mean by "should be"? Why isn't it clear cut, one way or the other? What are the extinuating circumstances?" "Are there no exemptions we could use to cover it?" Would it count as an increase in income? Or WHAT?"

As someone mentioned, I'd be more concerned about your tax returns if you tend to get more than a few hundred back, being that this will be coming up in the near future. Ask your attorney about taxes, then you can lead into grilling her on the other question again.

Good luck!