Bonuses

[jessegirl]

Recieved a bonus in Jan. and have been for the past 21 years. The bonus is not guaranteed from the company. Now we are filing in Sept. or Oct. eventhough, it is more then 6 months after the bonus to file. On the paystub its shoes the incentive bonus of $$$$$ and will continue to show it untilt he end of the year. Won't the trustee question the bonus? Naturally, its gone, we used to to live on and pay bils. I know its 6 months of paystubs, BUT the total bonus shows in the year to date section and does with every pay check. There is no gaurantee that we will get this bonus next year. It depends on how the company is doing. Will the trustee object to our chapter 7 because of this bonus? Its a nice chunk of change over 45K.

[kimba251]

I can see it being included in your income because you have received it for 21 years. If you received it once or twice in 21 years I could say you have an argument. Since you have received it yearly for so long I would think it would be a losing battle.

I wouldn't wait for the trsutee to ask about it since it is on every check. Again it will all depend on what your lawyer thinks and intends to do concerning it. What does your lawyer say about it?

[soleprop]

unsure if the trustee would object to your ch7 or not as there are a lot of other details required to even start considering that, but you can bet he'll be interested in that bonus if/when you get it.

it seems like ch13 would protect the bonus, and if you file ch13 now showing last 6 months of income and set up your plan accordingly, you would be able to have the affirmed plan and a few payments already under your belt before the bonus hits, and at that point it should be yours to keep/not factored into your bk payments because it is income received post plan affirmation.

just thoughts. also i'm no expert. you should talk to an attorney.

[AngelinaCat]

Are you using a lawyer or are you filing pro se? If you said, I have forgotten. But we had to have all our paystubs and advices for the attorney to get her figures from. Our Trustee never asked for specific paperwork like that.

I was concerned too, because I had bought a car at auction held by my former employer, and I paid for it by weekly deduction from my paycheck. That showed a YTD accumulation too, though the car had long been paid for by the time we filed, that YTD info was still there.

[TEW]

The trustee will see the bonus on the tax return. I’m not sure how you plan to report something you are already reporting. Did you want to do a 7 or 8 month look back?

[jessegirl]

My attorney tell us that they do a 6 month look back, but on my paystub in the ytd column it shows the bonus that was given. My attorney seems to think it shouoldn't be a problem because its past the 6 months. But, i like to have an opinion just incase enyone else has gone thru this and the trustee asks about it. We are not hiding anything, but was wondering if we are defiantely filing a chapter 7 can she dismiss it or make us do a chapter 13 because of the bonus.

[AngelinaCat]

We were handed all our stuff back before we filed, so all the Trustee would have seen (to my knowledge) were the figures on our filled-out schedules. The pro se fillers probably have to submit copies of those things at their 341. I don't know; perhaps one of our pro se filers out there will see this?

[AngelinaCat]

To add to the above, we were ruled an Asset Case (a 7) because we had too many non-exempt items listed. We are on a buy-back plan in order to keep our stuff.

[BKParalegal]

I have mentioned this before in other threads. There is no guarantee of a bonus and if timed correctly it will not reflect in your CMI(Means Test Income). The law was written to see an average of someone's income to prevent waiting for a really bad month to file. This does not all the trustee to have it both ways and include something you may or may not get in the future. It is obstacles like this where your attorney fees are well spent.

Good Luck

[BKParalegal]

To add to the above, we were ruled an Asset Case (a 7) because we had too many non-exempt items listed. We are on a buy-back plan in order to keep our stuff.

ACat, I am sure you are a very sweet person, but why these ancillary entries in these threads that sometimes mess up the continuity of what is being discussed. If it was occassional, it wouldn't matter, but a lot of the times, I get confused about the topic with your tangents.

Something to think about.

[AngelinaCat]

ACat, I am sure you are a very sweet person, but why these ancillary entries in these threads that sometimes mess up the continuity of what is being discussed. If it was occassional, it wouldn't matter, but a lot of the times, I get confused about the topic with your tangents.

Something to think about.

Because it is a possibilty that she might be ruled an Asset 7 and not get converted to a 13.

[BKParalegal]

Having income over the median is not even in the same stratosphere as an Asset 7.

[dadkrs]

August Bonus

Hi Everyone

Question. I was planning on filing Chapter 7 by Aug 31. I was told by my attorney that since I use Feb thur July 31 to average my income I'd be ok on my means test.

Yesterday, I received an 18K separation package payment and now my attorney says the court will want to know about that payment and could jepordize my Chapter 7. He suggests I wait 3 more months so that this payment will have less impact. I thought that payment received outside the 6months previous to filing would not be a problem.

Please help and set me straight

Thanks

[soleprop]

if you haven't filed yet your six months count includes up to the date of filing, meaning it will include yesterday's 18k separation package. this payment is not outside of the 6 months previous to filing, unless your post is wrong and you already have filed - but even if that is the case, the trustee will ask at the 341 meeting and you are under oath/required to answer honestly, if there have been any changes to your financial situation.

[BKParalegal]

Could be construed as windfall and not part of your normal income is what the attorney is probably thinking. Better safe than sorry,since you want to file it right the first time.

Good Luck