341 next weeek & income over due to bonus and sick payout

[janie]

Of all years to get a bonus & not use many sick days!! I was under the median for Chapter 7 & attorney said will be smooth. I didn't expect a bonus or think of sick pay out for days not used as income until tonight when I looked at my latest paystub.
I have a sick feeling in my stomach tonight, wasn't nervous until this happened. I will call my attorney tomorrow but I feel so sick....I can't make a Chapter 13 with a car that always needs repair & this modular home needs windows, etc....what am I going to do?

[ssmdem]

Personally, I think everything is based on your filing date. If you didn't expect a bonus at the time of filing, then I don't see it coming up at the 341. Ask your attorney, but I think you'll be fine.

[janie]

I am supposed to bring my SS#card, drivers license, and my most recent paystub to 341. That paystub gross total year to date is over the means for my state, thanks to the bonus and sick pay. I would have been sick every day since I filed had I known!! Now I am sick. I don't get this 6 month look back but they want recent bank statements and paystubs. Why?

[ssmdem]

I would talk to your attorney. All we have been asked to bring to the 341 are our SS cards and driver's license. My attorney only asked for paystubs and bank statements as of the date we filed. We haven't been asked for anything beyond that. We filed in December, so our six month lookback was June-November, but we were asked for all paystubs we received up until the filing date - so for us, that was the first pay stub of December. It wasn't included in our six month look-back total though, but they did ask for it. Don't be too concerned about the year-to-date total, as they really are only looking at the six months prior to filing. We were over median too, but we still passed the means test because of our expenses, so you aren't necessarily going to be pushed into a chapter 13 just based on this, so don't worry so much yet. I know it's hard not to -- I have worried myself sick these past few months, but absolutely everything I have stressed over, when I spoke to my attorney, she acted like it was nothing. I don't see this changing things so drastically for you - just may have to rework some numbers at the most. If you're already under median, it certainly can't be enough to push you into a chapter 13. Try to get some sleep and just make the phone call in the morning.

[free2breathe]

Of all years to get a bonus & not use many sick days!! I was under the median for Chapter 7 & attorney said will be smooth. I didn't expect a bonus or think of sick pay out for days not used as income until tonight when I looked at my latest paystub.
I have a sick feeling in my stomach tonight, wasn't nervous until this happened. I will call my attorney tomorrow but I feel so sick....I can't make a Chapter 13 with a car that always needs repair & this modular home needs windows, etc....what am I going to do?

While the income is looked at for the 6 months before the filing date, you may run into a bit of an issue as far as assets go. Wages that are earned but unpaid at the time of filing are still considered property of the bankruptcy estate. I'm pretty sure that both would be considered as such. Contact your attorney and find out if you have exemptions to cover this. If not, worse case scenario is that they will turn you into an asset Chapter 7 and distribute a portion of those funds to your creditors.

Don't fret. It's not something you were expecting, so the trustee isn't going to rake you over the coals for it. It is just something that definitely should be disclosed.

I am supposed to bring my SS#card, drivers license, and my most recent paystub to 341. That paystub gross total year to date is over the means for my state, thanks to the bonus and sick pay. I would have been sick every day since I filed had I known!! Now I am sick. I don't get this 6 month look back but they want recent bank statements and paystubs. Why?

The paystub request is so that the trustee can determine wages earned but unpaid at the time of filing. The bank statements show that you were reporting the correct amount in your bank account on the date of filing. Both normal requests by many trustees.

[jlynn275]

I have the same issue! My 341 is on the 20th and my husband got a Christmas bonus (first year at this company), I received a $50 health screening credit and for the first time in TEN years I will have overtime on the check the week before my meeting (it's a one time training on a Saturday). It's crazy how this all happened, but I'm hoping it won't be a problem since they are all one time events. We are already slightly above median, but passed means test and have negative disposable by about $800.

Good luck, I'm sure it will be fine!

[tcreegan]

Hi all,

Just wanted to throw in a ray of hope, several courts have ruled that including a 'one-time' payout in the 6 month lookback produces an "absurb result" and should not be included. Remember at least one where the court wanted it averaged over a year.

Another ray of hope for you janie, there have also been a number of court cases where someone didn't pass the Ch 7 conditions, but didn't have enough to fund a Ch 13 plan were allowed to stay in a Ch 7.

The good 'ol "totality of circumstances" clause can help sometimes, not just hinder...

Tom in Colo