Two questions

[NoMore]

Hi everyone!


Question #1
I understand that tax refunds may end up in the hands of the trustee, but what about bonuses? We will be paying manually rather than through payroll.

When we spoke with our lawyer we had to include any bonuses received as income, which litterally kept us from being able to file 7 by about 100 per month. Having said this, can the trustee take these bonuses, especially as it was considered regular income? The whole reason I'm in a 13 is because they assumed this was regular income.

Question #2
What if we find ourselves halfway through the 13 and come into a "windfall". Would we be able to buy out the remaining balance on the 13? How does this work?

[HHM]

Question 2 still remains to be answered, we are now getting to the 3 year point from when the new BK law passed in 2005. Right now the consensus is, you CANNOT buy out in less than 36 months unless you pay off 100% of the claims (not just the balance of your plan payments, but 100% of the filed claims). It remains to be seen if, AFTER 36 months of being in a chap 13 if you can buyout for simply the balance of the plan.

As for question 1, your plan payment is your plan payment. You are correct, your duty under the BK code is to devout all your disposable income. My guess, the trustee is not expressly looking for you to turn over the bonus, your monthly payment already (or should) encompass your bonus.