I am being laid off the end of this month and will be filing Ch. 7. I am going to be receiving a pretty substantial severance check/bonus for staying this long - I was notified almost 2 months ago of the layoff. I've talked this over with my lawyer for the last week, and I think what he came up with is a good idea, but I wanted to run it by this forum:
He said if I filed before I received the check that I would only be allowed to exempt against the gross amount, so I would need to give the trustee almost 1/3 of it. However, if I receive it (I'd receive 1/3 less because of taxes), then I would be able to keep all of it, and if we file the same month that I receive it, then it would NOT count in my means test because that is for all income received the last six months (not including the month of filing). For example, I receive the check November 5, we file November 10, for the means test, I include May 1 - Oct. 31 income.
I totally understand what he's saying, but if this is included in the 6 month lookback means test, then I would fail it. I guess I just really want to confirm this so I can try to get sleep or if there is a problem, find it out sooner rather than later. What do ya'll think?
He said if I filed before I received the check that I would only be allowed to exempt against the gross amount, so I would need to give the trustee almost 1/3 of it. However, if I receive it (I'd receive 1/3 less because of taxes), then I would be able to keep all of it, and if we file the same month that I receive it, then it would NOT count in my means test because that is for all income received the last six months (not including the month of filing). For example, I receive the check November 5, we file November 10, for the means test, I include May 1 - Oct. 31 income.
I totally understand what he's saying, but if this is included in the 6 month lookback means test, then I would fail it. I guess I just really want to confirm this so I can try to get sleep or if there is a problem, find it out sooner rather than later. What do ya'll think?
Comment