Work bonus and will they take this too?

[rach3152]

My husband and I filed chapter 7 jointly in December. Our discharge is due this month. My husband found out from his employer that they were paying out a bonus he referred to as a company incentive program. After taxes were taken out he got $5500. He got this deposited with his paycheck last Friday and we called our lawyer the same day. Our lawyer got back to us today and said he was glad we called and to not spend it and keep it in a savings account and that he would check into it. We weren't planning on spending any of it without our lawyers advice. So now I wonder if the trustee will request this. If he does then he does I guess.

But, the trustee asked about work bonuses or anticipated future income at the 341 and our lawyer told us right before it was our turn that it didn't matter. In other words my husband asked him would a bonus be an issue and the lawyer said no.

This bonus is something he has rec'd in the past annually but it is never guaranteed because it depends on if his company did well the year before or not. My husband could not have anticipated he would receive this bonus or how much it would be. The company didn't even announce it until mid February.

What might the outcome of this be? We are already an asset case because we get a nice tax refund that we have to turn over and my husband was getting garnished by a creditor during the preference period and the trustee moved to get that back. Trust me though, we are just happy to be moving in the right direction and get a fresh start.

[rach3152]

OP, can I ask you a question? We were also asked in our 341 about future bonuses and we said no because our lawyer said we could say no. But, it is the same thing with my husband in regards to he doesn't know for a fact a bonus will be paid out or how much. Now, he did receive one last week and our lawyer wants to check on it and said not to spend it. We weren't going to. We are fully committed to our bankruptcy. Our discharge is due in a few days. How did this work out for your situation?

[sleepless2]

Hi It Sounds like you were a little farther along in the process than me, I just found out Yesterday I Should be getting a small Bonus also. Now At my 341 meeting I received paperwork from the Trustee with stipulations of, If you receive any money in the amount 2k or more in the next 60 days to notify the Trustee. It also has some other details about tax refunds inheritances etc. My Bonus was not even close to 2k. I planned on calling my attorney anyway just to let him know. I don't have the Paper with me, but will post any other details after I get home. I hope this helps. Good Luck!

[LadyInTheRed]

There are two issues. The first is whether it was an asset on the date you filed. I don't know how it could be since it doesn't sound like your husband had any right to receive it on the date you filed your BK.

The second issue is whether the income should have been included on Schedule I and, if it had been, would it have made your DMI high enough to result in an objection to a Chap 7 discharge because "based on the totality of circumstances" you can afford to fund a Chap 13. The argument could be that since your husband customarily received a bonus, a bonus of some sort should have been included on Schedule I. The counter argument is that since the bonus is not guaranteed and you had know way to know if there would be a bonus and how much it would be, it should not be included in income on Schedule I.

I hope you hear something definitive soon! Please let us know how it works out.

[LadyInTheRed]

rach3152, please do not post the same question in two places. It causes confusion. I have moved your post in the other thread and the reply to this one.