Just what constitutes "income"?

[GoingUnderInNV]

Just posing a hypothetical... Suppose someone in C13 or about to start a C13 schedule were to get an unexpected raise of less than 10% from their primary job. Now, what if he/she were able to negociate--- let's say--- a car lease instead of a paycheck raise with his/her employer. In lieu of a cash raise, the company would lease that person a vehicle, in the company name, instead of a raise. Does that technically constitute a "raise"? There's no income, there's no real evidence of compensation for work performed... Need to report to trustee?

And what if that said raise was MORE than 10%? Still a need to report to trustee?

[aa06a47]

Just posing a hypothetical... Suppose someone in C13 or about to start a C13 schedule were to get an unexpected raise of less than 10% from their primary job. Now, what if he/she were able to negociate--- let's say--- a car lease instead of a paycheck raise with his/her employer. In lieu of a cash raise, the company would lease that person a vehicle, in the company name, instead of a raise. Does that technically constitute a "raise"? There's no income, there's no real evidence of compensation for work performed... Need to report to trustee?

And what if that said raise was MORE than 10%? Still a need to report to trustee?

If you can find an employeer willing to do this, let me know. However, the hang up is the reported expense column. For example, if your showing your paying 400/month for a car plus the upkeep and maintenance of the car on your I&J, you are still required to be "truthful" on that statement. Failure to do so would constitute bk fraud. The trustee would want you to pay him whatever vehical expenses were part of the I&J which are now being paid for by the employeer.

[lrprn]

I'm thinking that the car wouldn't be declarable - it isn't yours, and it's to be used for your job. Nothing to declare.

Whether an actual $ raise would have to be revealed depends on your trustee's instructions about what he/she expects to be notified about - it varies widely depending on the trustee. Some want to know about any increase at all, some want to know about any lump sum more than $1000, and some want to know if the increase is more than some % (usually 10%).

[aa06a47]

lrprn, I believe your correct in that it would not be "delarable". However, the problem is if goingunder shows a 400/month car payment (for example) and now no longer has that car payment. The trustee would be interested in this new found "disposible" income.

[kwnancy]

Our trustee has never asked for tax returns or anything. Nothing has changed as far as pay increases but I looked thru our paperwork - no mention of notifying her office of any increases or extra monies.

As a matter of fact - our wage deduction is for only $526 of the $1000 per month payment. The wage deduction order was based on the original payment amount. Our confirmed amount, the $1000 was done almost six months later. We just send a cashier's check every month for the difference.

Based on all the advice on the board, we decided to 'fly under the radar' and not ask any questions or volunteer any information.

Of course I worry all the time.... But nothing new about that!

Cut up all credit cards 5/10/05
Filed C13 8/29/05 (old law)
First Payment 9/29/05 - $526 per month for 36 months
341 Meeting 10/17/05
Confirmed 4/10/06 - $1000 per month for 36 months