Talked to attorney

[hughewil]

And was surprised by the answer to some of my questions.

We are filing next month and we will be below the median income by about 2k. However in March I will reciebve a bonus, I don't know how much it is based on company and personal performance (performance award) and in the pst has ranged from 0 - 4K (last year was a bad year and the bonus was only $800).

I was worried that after we filed this bonus would push us over the median and into a 13, but the lawyer said that it wouldn't matter, that future earnings aren't part of the process and that it will only look back at the last 6 months. Even if out 341 takes a few months and isn't until after I get the bonus it won't count towards our median.

He also said that for this years tax refund we would only have to surrender what was over our exemptions (whatever we have left out of wildcard and cash allowed), and we wouldn't have to surrender any of the bonus.

Does this sound right? Seems weird I could get paid after I file but before I am discharged and the court wouldn't take it.

[despritfreya]

Listen to your attny. Post petition wages are not property of the Chapter 7 Estate. As to the refund, if it is within your State's exemption then that portion will be protected.

Des.

[drowning123]

Also, they won't necessarily take any of your tax refund.

[tcreegan]

Hi hughewil,

Does this sound right? ....yup, exactly what I would expect.

Tom in Colo

[debee]

I was worried that after we filed this bonus would push us over the median .... and we wouldn't have to surrender any of the bonus. Does this sound right? Seems weird I could get paid after I file but before I am discharged and the court wouldn't take it.

As others have said, the bonus doesn't count towards determining whether you are above the median because to determine that they look at the 6 months income prior to filing. It's strictly a "look back".

Bonuses can be two kinds: non-discretionary & discretionary. My understanding is that discretionary bonuses are considered earned upon receipt so if you get it after you file, it's yours. Same as your paycheck. If your bonus is considered non-discretionary then it is classified as earned wages and only that portion that was earned prior to filing and that cannot be exempted would be available to pay your creditors.

So your attorney has either determined that your bonus is discretionary and earned after filing, or he has found a way to exempt it.