Bonus Money from Job Exempt?

[ando]

I haven't filed yet , but it looks like it is going to be 13, I expect a small buy out from my job to leave on early retirement for an amount under little under $ 15000. what will happen to this money . Is it mine to keep ? or my lawyer should know about it? Or just put it in my checking account and spend it on Necessities ?

[lrprn]

I haven't filed yet , but it looks like it is going to be 13, I expect a small buy out from my job to leave on early retirement for an amount under little under $ 15000. what will happen to this money . Is it mine to keep ? or my lawyer should know about it? Or just put it in my checking account and spend it on Necessities ?

What you should do with the bonus depends on whether you have to file before you get it or wait six months after you get it to file so it won't be a part of your income.

It would help to know the state you live in. If you can share that, we can see how much cash your state bankruptcy exemptions will protect.

Your bk lawyer absolutely must be told about the buy-out! If you get the buy-out first and then file, he/she can help you get as much benefit from it as possible. He/she can also tell you how much cash you can have on hand on filing day and still have it completely protected.

If you file Ch 13 and then get the buy-out, then your lawyer will know whether you have to report it to your trustee and when. Also your lawyer will know if you do have to report it, how much (if any) of the buy-out you *might* lose to your trustee.

[jribe]

I haven't filed yet , but it looks like it is going to be 13, I expect a small buy out from my job to leave on early retirement for an amount under little under $ 15000. what will happen to this money . Is it mine to keep ? or my lawyer should know about it? Or just put it in my checking account and spend it on Necessities ?

bonus money is not magically exempt in bankruptcy laws. It'd be nice if it was

If you file and get closed before you take the buy out you should be fine; just that you'd technically have to lie at your 341 when asked about any future money that you may be getting. But that's your own choice.

Do not take it before you file- you'll have to cover the amount in exemptions- plus the whole thing will be tacked on to your 6 month income; can you afford your regular salary from the last 6 months plus another 15k to qualify for a ch 7?

[ando]

Thanks both for the reply, I live in New York, I don't qualify for 7 since I have enough equity in my house, lawyer said I have to go the 13 route. But he is buying time now to see what he can do for affordable monthly payments.In the mean time I got a friendly letter from from one of my bank creditors whom I owe money on one of my credit cards asking me if I want to settle for half the amount and no questions asked. But how? I can't even afford the minimum monthly payments , how can I give them half of debt which is by the way little over $20 grand.

[forgotten]

But how? I can't even afford the minimum monthly payments , how can I give them half of debt which is by the way little over $20 grand.

They hope you will raid your retirement account or have some other asset you can sell to come up with the money to pay them to get it settled.