top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Is pay for unused vacation time earned before six months income?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Is pay for unused vacation time earned before six months income?

    Greetings,

    I plan to file pro se this week. I have a question about how to list my income. I am right under the median if I file this month (based on income from May 1 2010 to Oct 31 2010). However, I am expecting a check of about $2900 between filing and my 341 meeting from my previous employer for unused vacation hours. If I include that into income earned for the last six months I’m over the median and can’t file chapter 7. BUT, I read somewhere that it depends on when you earned the money not when you get paid for it. In this case I earned 57 hours of vacation during the last 6 months (valued at $1292). The rest of the value of the $2900 payout would be for vacation earned prior to May 1, so it should not count as earnings for the last 6 months, right? I’m thinking not. It may still put me over the median to add even the $1292 portion of my expected payout to my 6 months gross

    BUT I ALSO have been paid for vacation hours I used during the last six months that should ALSO be considered to be earned prior to May 1. On May 1, I had unused vacation that I used and have been paid for during last 6 months; probably $2000 worth, if the concept I am imagining holds true, I shouldn't have to include that annual leave (vacation) either, right? I'm thinking not. If I can somehow not include the value of these payouts because I earned them prior to 6 months ago I will be under the median. In a nutshell, I earned 6 hours of vacation every two weeks for the last few years I worked there (I no longer do work there) and some of pay I received during the last 6 months and some of the pay I am expecting are for vacation hours I accrued prior to 6 months ago. If I am forced to include it, it would seem like I would be getting double hit by it.

    So, can I somehow exclude part of my gross earnings if they were paid out for vacation I earned prior than 6 months earlier and part of my expected payout as earnings for the last 6 months for the same reason?

    If I can, How do I list it?

    I saw a court finding in New York where someone did something like that but I didn’t understand well enough.

    Almost ready, want to file this week.

    Thanks
    Last edited by phxtoatl; 10-31-2010, 06:27 PM.

    #2
    Hi pxtoatl,

    Line 3 on the means test (B22A) says 'received' for Gross wages, salary, tips, bonuses, overtime, commissions. I would take this to mean your unpaid vacation pay is not included in the means test.

    It would go on Schedule J on the 'reasonable anticipated changes in income' line.


    This is also a problem, in AZ the trustee can ask for 25% of your vacation pay:

    33.1131 the maximum part of the disposable earnings of a debtor for any workweek which is subject to process may not exceed twenty-five per cent of disposable earnings for that week or the amount by which disposable earnings for that week exceed thirty times the minimum hourly wage prescribed by federal law in effect at the time the earnings are payable, whichever is less.

    Sorry to be the bearer of bad news....

    Tom in Colo
    Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

    Comment

    bottom Ad Widget

    Collapse
    Working...
    X