Just a thought????

[ConnieS]

We are supposed to file for Chapter 7 sometime soon. Still waiting for lawyer to finalize papers. Under State median, no assets, negative disposable income. My thought is....................................from time to time the place where my husband works hands out "cash" bonuses. Usually when there particular department has had a good month, so there is no rhyme or reason to it. Last one he got was in April (this one has tax deductions and was listed as income on petition) The "cash" bonuses are usually about $500 and believe me when we get them we don't go out and splurge, we usually catch up on some bills or buy something needed for the house or car. etc,

My question is, if he would get one of these bonuses sometime between now and our 341, is it reportable? Last thing I want to do is ANYTHING to throw a monkey wrench into the mix!

Your views would be greatly appreciated.
Thanks

[Danielle1981]

I have no idea....but I did crazy amounts of OT on this check and I'm between my filing date and 341. I had to have enough to pay the attorney then have extra to pay my bills.

[pink_amulet]

Not sure how that would work out. Ask you lawyer. My hubby had a mess of overtime the over the last summerRIGHT before we filed!! I was freaking out!!! We explained to our lawyer it was a fluke thing...he normally never gets OT. They said it was ok cause it is not on a consistant basis. They "worked" the numbers and the trustee never say anything about it.

Talk to your lawyer, and see what he says.

[NASCAR20FAN]

I recieved a bonus of $400.00 in Feb. My lawyer said no problem.

[lrprn]

Frankly the answer about whether you have to report extra income after filing is.....it depends.

This is one of those areas where local court custom and trustee preferences drive if you have to report the extra or not. Some trustees instruct that if you earn or receive more than 10% of the income level you filed with, they want to know - otherwise sock it away for an emergency. Other trustees require you to tell them if you receive ANY extra income at all.

Unfortunately the trend seems to be headed towards reporting any and all extra income to the trustee. Guess the trustees have decided that it's ok if the current anemic 30% of Ch 13s who manage against all odds to finish their plans successfully drops even lower....sigh...

Take a look at the papers you received (or will receive) from your trustee and see if it mentions anything about reporting extra income or gifts. Also some trustees mention what they expect you to do in this situation during the 341 meeting. If you filed with a lawyer, he/she should be able to provide some insights about what to do as well. Good luck - please let us know what you find out.

[anonymuse]

Obviously, it's best to ask your lawyer.

Do you literally get "cash" or is it a check? I know I'm not being exactly ethical here; however, if it's cash, then don't say anything and don't deposit it. If it's a check, I'd hold off from cashing and depositing it until after you are discharged and closed.

[Minnymouth]

You probably have nothing to worry about since it is usually a one shot or seldom thing to happen.

If it doesn't affect your "means test" it probably won't matter much.....

Check with your attorney.

[ConnieS]

Thanks for all the great replies. Yeah, I will run it by my lawyer just in case. I just want to have all of my bases covered. I just wish we could get those darn papers signed and filed.

We are about $8000 below the means test, so it wouldn't be a problem there.

Thanks again!

[ConnieS]

Spoke to the lawyer about this, she said it isn't actually considered "earned" income so it would be no problem if he got a bonus.

Paper work is all done, looks like we will be filing on Monday!