Bonuses

[Surviving]

Has anyone successfully kept a bonus from their work? I received one recently (the first time I have received a bonus since Chapter 13). My family needs the money and I would like to keep as much of it as I can. I know with C13 it's considered additional income. Has anyone experienced this, and what are some tips for navigating this? Thanks!

[justbroke]

Yes. Ask your attorney and if you have a bonafide reason then the attorney will ask the Trustee. The Trustee may have a specific form or may, or may not, want the attorney to Motion to Keep Bonus and file with the court. Most Chapter 13 Trustees are okay with keeping refunds or bonuses when there is an urgent need. I kept 3 of 5 tax returns because I had to maintain my house (broken septic line, expensive re-sodding, new appliances, etc).

I like to say that "life happens" when in a Chapter 13. There are mechanisms in place to deal with this, but you need to ask permission first... unless a bonafide emergency such as when my sewer line exploded and backed up into the house.

[Carmella]

How large is the bonus and are you paying back 100%?

The largest amount of money we came into was about $800 and our lawyer thought that was a small amount nothing to worry about. We were paying back 100% which is my understanding they usually don't take more money if you are already committed to 100% payback.

Definitely check with your attorney they know best.

[GreenV98]

I’m at 2nd year out of 3yrs payment plan. And so far have been under the Trustee’s radar. We are a huge family and I also have my parents living with me. So far my husband and I have kept our bonuses with no problem. Mine is $480 and his is $2,800 after taxes. I have yet been asked for tax returns either. I only have about until October 2024 and hopefully be all done. I’m in state of VA. My lawyer did his best to help maximize all of our entire household’s expenses. Tremendously helped with our monthly agreed payments & having a 36 months plan to be done with BK 13. As long as you can justify where those funds will be spent, I believe you can keep it. A motion request is definitely the way to request if needed to justify and keep it.

[notreallyme]

We keep our bonuses - I just talked with our lawyer to confirm. We are in a 60 month 100% plan. The income we submitted when we filed had a bonus and this was included when our lawyer and trustee calculated our DMI - this combined with the 100% payback is why we keep ours. Lawyer said since the bonus was included in the DMI, future bonuses are ours. Off course, the income we submitted had a record bonus and this year's is the smallest they have paid in 7 years. Same on income taxes - we keep refunds. This year will owe a little bit, but most years I adjust withholdings to break about even.