Just about there!

[mlevesque308]

I met with my attorney sometime last week for our final meeting. Worked on all paperwork getting it ready to file. He made the following comments:

* He wanted me to include my expense money; I receive for mileage, at first I was stunned. He mentioned we would increase my gas/food expenses. I don't pay taxes on this money, nor do I receive a 1099 (I think I'm going to pressure him on this)

* Just waiting for approval from Disibility Insurance policy to be approved about 10 more days; before he files all paperwork.

* My question other comments on in another post about transferring out of my condo/ to an equal value unit; he said we could do two things and he will have a better gauge as to what we should do once he's spoken to UST (he said he is going to be proactive with him and not allow him to wait until the 59th day) - either wait until this asset has been discharged from bankruptcy or once the entire case as been discharged.

* He said leave what trustee we get for my 341 up to me. He also told me to leave all jewelry home and dress down.


I'm thinking I really need to challenge is logic behind counting my expense check as this increases my salary on average $600/per month and I don't get any tax benefits....

Thanks again to this site; I feel so much better being 10-days away from filing. This in my opinion as been the worse part getting all the paperwrok gathered and finalized.

[frogger]

I'm thinking I really need to challenge is logic behind counting my expense check as this increases my salary on average $600/per month and I don't get any tax benefits....

So.............. you're thinking about not listing some income?

Bad move, and it will end up biting your a$$.

Your job is to be 100% truthful, and that means the complete and entire truth.

[mlevesque308]

With all due respect, Frogger, I see no where in my post did I say I was going to without income or not be 100% honest. I disclosed all forms of deposits going into my checking account. If I wanted to hide anything I would have cashed the checks or simply yet not filed an expense report until after the BK was discharged.

What my argument or challenge is to my attorney is this. I receive reimbursement for mileage from my company, taxes are not withheld, nor do I receive a 1099 at the end of the year to claim such expenses on my taxes as income. So, if the IRS doesn't view this as income, I want clarification as to why bankruptcy court would view it as income.

Nothing more than that. Seriously, $600 is not enough money to ever change my integrity at this point in my life. Good thing my moral compass is still intact.

[Pjmax]

Try thinking of this in a different way. Your reimbursement expense money offsets your expenses.

(I'm making up numbers here)

Income $1000, less travel & gas expenses $200, plus reimbursed exp. $150, net $950, unreimbursed expenses $50.

Or as your attorney is doing it:

Income $1150, less travel & gas expenses $200, net $950.

I've simplified it a bit, but it is a wash. This has nothing to do with taxes, it's a BK accounting method (for want of a better description.)

I hope this helps.

[TheBajan]

My husband receives travel reimbursement for the military work he performs at veterans funerals. This is not considered income by the IRS. It doesn't show up on our W2-s at all. However, for accounting/budgeting purposes, we treat it as income and rely on it to offset our expenses. Your BK trustee will look at it the same way. If you are claiming what you are spending on gas, then you also claim what you get reimbursed for it. Hopefully that helps explain it for you. The BK doesn't look at what's taxable income, they look at all sources of money coming in, and they look at all expenses going out.

[mlevesque308]

Thank you Pjmax and The Bajan!