Paying back employer advance

[notagain]

I am planning to file 2/1/08.Met with atty 12/31. I asked her about this, but her answer was vague - she probably did not want to violate the financial advice rule??

DH's employer loaned us several thousand dollars, which is taken out of his check after taxes. He will be done paying this loan in July.

My question's are:
1. Can we list as an expense and keep paying as normal out of the plan?
2. Will the Trustee want to know how long we will pay?

If this is counted as an expense, it will reduce our disposable income, but if the trustee knows we will soon pay off - will he/she add it as income?

Thanks for any advice.

[aa06a47]

In my opinion, Your DH's employer must be listed as an unsecured creditor in the bankruptcy filing. This could be very uncomfortable.

There is nothing in the law that says you cannot pay a creditor back after you get you plan completed.

Given the relationship breaker this might have with you dh's employeer, I would say if it is an amount you can do without each month and not miss with your proposed Chapter 13 plan, I would try and keep it out of the plan, especially since the payment will be done in 6 months.

[notagain]

Thanks for your reply. We will definitely pay his employer back 100%. What I'm not understanding is does this amount help us or hurt us when it comes to the means test or Schedules I/J? Does this make any sense?

It's $ 500 per month, so it's a nice chunk. Employer is pretty understanding, and will deal with the BK as long as he is paid.

[coma]

Not sure that we had the same situation, but similar. We had an advance in salary from my husband's military check. Since it was a payroll deduction that we had no choice but to continue, we listed it on schedule I and explained it in the comments section. Ours was for a while after we filed, though, so adding it back in was not an issue.

Is yours an involuntary payroll deduction?

[notagain]

coma, yes it is an involuntary payroll deduction, so there is no getting around it.

I know it sounds terrible, but I'd like for it to count as a monthly expense, because when it is paid off, we'll have that $500 per month. IS that how it works?

[coma]

That's what we did. Took if off on schedule I, and the trustee didn't say anything about it ending in November. ours was about $400.