DH and monthly stipend

[ladyjenn]

Ok..here is the deal (as I see it).

DH gets a $300/month stipend to cover health insurance. This money is neiter on his W2 or taxed (but it does show in our checking account, or else it would be untraceable) This money will also push us to a CH 13, I believe. Is it possible that we tell his employer we don't want the money anymore to stay in a Ch7? I am just sick over this. Yes, it would be a $300/month loss, but if we were in a Ch13, that is about what our payments would be, so then it breaks even, and we get a 7 instead of being tied up in a 13 for 5 years. I am sure the atty would want a letter from his employer stating that is will not be receiving this money anymore, which is fine.

[newbie2]

Ok..here is the deal (as I see it).

DH gets a $300/month stipend to cover health insurance. This money is neiter on his W2 or taxed (but it does show in our checking account, or else it would be untraceable) This money will also push us to a CH 13, I believe. Is it possible that we tell his employer we don't want the money anymore to stay in a Ch7? I am just sick over this. Yes, it would be a $300/month loss, but if we were in a Ch13, that is about what our payments would be, so then it breaks even, and we get a 7 instead of being tied up in a 13 for 5 years. I am sure the atty would want a letter from his employer stating that is will not be receiving this money anymore, which is fine.

I'm confused. Is more than $300 a month taken out of his check for health insurance premiums then $300 is deposited back to him?

[ladyjenn]

NO. His employer doesn't offer health ins. They give the employees
$300/month to help cover a policy they would buy on their own.
What I don't understand is how his employer can even do this if it isn't taxed and not a part of the w2 at the end of the year. To me, it should be reported as income on the W2, but it isn't.

[newbie2]

NO. His employer doesn't offer health ins. They give the employees
$300/month to help cover a policy they would buy on their own.
What I don't understand is how his employer can even do this if it isn't taxed and not a part of the w2 at the end of the year. To me, it should be reported as income on the W2, but it isn't.

I don't know the legalities of the employer not reporting it as income, but that is neither here nor there. The $300 would be considered income I would think, so best to ask your attorney before you do anything like ask the employer to stop the payment of it. My worry would be if the trustee looks at check stubs and sees the addition, then the sudden subtraction of it.

[ladyjenn]

I don't know the legalities of the employer not reporting it as income, but that is neither here nor there. The $300 would be considered income I would think, so best to ask your attorney before you do anything like ask the employer to stop the payment of it. My worry would be if the trustee looks at check stubs and sees the addition, then the sudden subtraction of it.

My thoughts exactly. I think we will just have to suck it up and go with the 13. I think it is inevitable with that money, and I know I don't want to hide anything, to have it bite me in the behind later. Because I know it would with my luck! Thanks!

[catleg]

There are probably some better ways to accomplish the same thing, like taking some unpaid time off, get some more term life insurance, get/upgrade disability insurance, etc.