Commisions

[mrman]

I'm a 100% commisioned agent and my 341 is in Jan. I may finally close a big case and bring in 4k. What would happen? It would only be one paycheck and it would be about 2 mo expenses. Does the trustee get it all, I might as well not go through the hassle to finish the sale if that's the case. Should I give it to a coworker and let him give me one down the road?

[quest42]

What's your state and district? Wnat are your exemptions? I think the trustee MUST take whatever is NOT exempt, up to the date of discharge, and maybe you have to report any significant changes for 180 days after that, even??? If your averaged monthly income, averaged over, like 6 months, changes???

Where are the guidelines for trustees published???

[AAAArt]

I'm in IL, so I can't speak specifically speak for anywhere else, but I think what I am going to say applies in general.
Commissions are tricky and the Bk laws re: them absolutely suck! If you close a big case now, and have the money in the bank, it will be viewed as an asset and they will take it. The absolute best that you could hope for is that they would allow you to average it into your last 6 months or years income, but even that is doubtful. Around here, renewal commissions are treated as an asset and must go to the Trustee.
I once had a $34,000 payday (one day...one check), but my income for the year was only $56,000. It would not have mattered to the Bk court or the Trustee how many hours I had put in earning that commission over the 1 1/2 years prior to receiving it or that next month my income might be zero.
BTW, the one thing that I have been told is that they cannot take the money you will owe to the IRS and the state, you can request that much be witheld and sent to them as a quarterly estimated payment.
As to giving it to a co-worker, well you know how life is when you are on commision. Yoou will make at least a short-term friend, but I wouldn't really look for them to pay you back by giving you anice juicy sale in the future since they are also trying to eke out a living...but you know your co-workers better than I do, or at least you will if you choose this route.
Basically, you're between the provibial rock and a hard place. Unless you can take the money and spend it on allowable expenses right away and keep receipts, then you are prob. going to lose it. For example, I receive a quarterly "solicitor's fee"....kind of like an ongoing referral fee or renewal commission. I received it the first part of Oct. and immediately sent it to the IRS and State as I used to work at a job where I overpaid my taxes and therefore came out even at the end of the year. Now that I am on medical disability, no money had been paid to the IRS and my acct. estimated my additional tax liability for IRS as approx. $5000 - $6000. My 341 comes up on 12/8 and my next quarterly payt will be in Dec. They will prob. want to take it and maybe all future payts. (My attorney said that it may come down to whether or not it is assignable...which it is not. His experience is that they usually won't take it unless it is assignable. Sure hope he's right, but he was the only one of the 3 I interviewed who was sharp enough to consider that angle. The other 2 told me it was going to be taken and there was nothing I could do about it.)
Consult your attorney or any Bk attorney and seek advice for your area.
Best wishes, Art