Filing July 1
My husband accepted a new position with a higher salary but we were still on pace to file Ch 7 in July. We would be $200 under median by July. Company is paying for (a) a furnished apartment for 6 weeks and (b) our move. My husband was just informed TODAY that both of those expenses ($1500 for apt/up to $7000 for the move) will be put on his check as a "non-cash compensation" and we will have to pay taxes on the money. I'm fine with the taxes but really not OK with having phantom income added to his check right now! It really messes us up! For some naive reason we assumed the company would pay the vendors directly.
We checked in with our lawyer - he said there is a small chance the trustee will say it has to be counted as income. And we will be toast. He would argue that it's not "income" in the truest sense - more a one-time reimbursement/benefit.
If anyone has any experience with anything like this I would really appreciate advice.
My husband accepted a new position with a higher salary but we were still on pace to file Ch 7 in July. We would be $200 under median by July. Company is paying for (a) a furnished apartment for 6 weeks and (b) our move. My husband was just informed TODAY that both of those expenses ($1500 for apt/up to $7000 for the move) will be put on his check as a "non-cash compensation" and we will have to pay taxes on the money. I'm fine with the taxes but really not OK with having phantom income added to his check right now! It really messes us up! For some naive reason we assumed the company would pay the vendors directly.
We checked in with our lawyer - he said there is a small chance the trustee will say it has to be counted as income. And we will be toast. He would argue that it's not "income" in the truest sense - more a one-time reimbursement/benefit.
If anyone has any experience with anything like this I would really appreciate advice.
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