Question about a bonus received before the 341

[jsparkles]

Quick question...We filed last week. My husband will receive a $900 bonus in addition to his normal paycheck this week. We need to give the trustee all of his paystubs up until the 341.

Is this extra money going to look bad? Will it impact anything?

[btbeme]

Quick question...We filed last week. My husband will receive a $900 bonus in addition to his normal paycheck this week. We need to give the trustee all of his paystubs up until the 341.

Is this extra money going to look bad? Will it impact anything?

You will most likely get a question at your 341 regarding the bonus. If this was atypical, it will likely be treated nicely.

Now, if you don't get a question at the 341, don't offer additional info - just stay quiet. The Trustee may or may not ask after the 341 for a better explanation. Don't do the Trustee's homework for him/her. But if you are asked, explain it factually and with as few words as necessary. Phrases such as "one-time" and "unexpected" can have the impact you would like to see, if it was indeed unexpected and a one-time deal.

[AngelinaCat]

Did you know about the bonus before filing, or was it a surprise?

[jsparkles]

We knew it was possible, but nothing was firm. Thank you for the advice as to what to say at the 341...very helpful!

[btbeme]

Be honest. Period. You will be under oath in a Federal court when you get asked about this.

Short and to the point. And honest.

[btbeme]

Sorry, I feel that I need to say something else, not for you but as a learning point for others (since this topic will get a lot or reads)...

When you file BK, the Trustee essentially creates an entity called an estate which has the Trustee at its head. Within that Estate is everything - EVERYTHING - that you own or are entitled to own for a period of time which could extend to several years. If the Trustee feels that you are open, honest, and transparent about your finances, you MAY be given the benefit of the doubt should something not fit the Bankruptcy Mold. Anything that does not conform to the strictest reading of the BK code belongs to the Trustee to dispose of how he or she sees fit.

Trustees are people. They have good days and bad. Some are hardened by years of people trying to throw one past them; others are just starting out and need to see where the boundaries lay. Others are more lenient when you are honest and simply make a mistake. It all depends, and NOTHING can be said with certainty...except for one thing.

That one thing is that a BK Trustee has a great deal of power, as granted by Federal Law. That law can set you free, and can just as easily crush you underneath the wheels of justice. In any case, Truth will usually win out, and having Truth on your side is important here. Sometimes, Truth can hurt. Sometimes, Truth can hurt badly. But I promise you that it hurts a lot less than having a Trustee tear your life apart over a thing or a half-truth or a shaded truth or a ... well, you get the message.

Hey, Bankruptcy hurts. It should. If it didn't, it would be spelled c-a-m-p.

[jsparkles]

Thank you, btbeme, for your advice and insight. I completely agree that honesty is the best policy. This is a "travel" bonus because my husband is working out of state for pretty much the entire month of October. It may happen once or twice per year. We are using the money to help pay for our lawyer. I don't mind giving it up if we have to, I was just worried if this would impact our entire case. I guess we won't find out until the 341 or later. My plan is to submit everything that is asked of us, leaving nothing out, be completely honest at the 341 meeting, using simple answers to answer the questions, and say a few prayers! I hope it works...

I am so glad I found this forum. It is so helpful, and nice to talk to others about it. I hope that soon, I can be of some help instead of asking all the questions! Thank you...