Dismissal Letter

[inajam37]

Ok, should I be worried? We received a motion to dismiss letter today from the trustee to the court. Reason stated that spouse's bonuses for 2008 had not been turned over. My spouse receives quarterly bonuses and part of our plan is to turn over 1/2 of each bonus to the trustee. We received 2 out of the 4 bonuses this year. The company didn't make a profit 2 out of the 4 months so no bonus was received therefore no money to turn over. We did turn over 1/2 of the other 2 bonuses per our plan. Should we be worried? Or, is this a quick fix? I've emailed our attorney but obviously it's the weekend so I just need some thoughts to help me sleep tonight. Thanks for listening.

[BigJohn]

It sounds like a no brainer.

[lrprn]

This should be resolved as soon as your trustee finds out that there were only 2 bonuses last year and those were already turned over.

This is an important Ch 13 lesson to keep in mind going forward - assume nothing! Next time you aren't going to be able to provide something your trustee wants like an expected bonus that isn't distributed, you need to let your lawyer know immediately so he/she can notify your trustee there is no bonus to share.

Being proactive in these kinds of situations is key to a happy trustee and a smooth Ch 13 well under the radar

[justbroke]

Ok, should I be worried? We received a motion to dismiss letter today from the trustee to the court. Reason stated that spouse's bonuses for 2008 had not been turned over. My spouse receives quarterly bonuses and part of our plan is to turn over 1/2 of each bonus to the trustee. We received 2 out of the 4 bonuses this year. The company didn't make a profit 2 out of the 4 months so no bonus was received therefore no money to turn over. We did turn over 1/2 of the other 2 bonuses per our plan. Should we be worried? Or, is this a quick fix? I've emailed our attorney but obviously it's the weekend so I just need some thoughts to help me sleep tonight. Thanks for listening.

I don't understand what you mean by our plan was. Was that in your actual Chapter 13 Plan? Was it calculated based on your B22C and DMI projection? If you were to turn them over upon earning them, why were you only turning over half? Forgive me if I don't understand what you plan was.

Also, if you have something in your Plan (confirmed plan) which states that you will turn over funds, the Trustee will be expecting them.

You should be able to clear this up if your agreement was in fact to turn over 1/2 of the 2 you did receive.

[AngelinaCatHub]

The sooner the lawyer answers the Motion, the better. You can't give what you don't have, but the Trustee may have had some trick played upon him in the past. You might also give your lawyer some sort of documentation from the employer. Your DH should have been given an explanation why no bonus. Hope it is in writing. 'Hub

[rrockinggramma]

In addition, I would definitely follow up each quarter with a letter to the trustee's office about the bonus, received or not. Just like tax refunds and tax returns, the trustee is following the letter of the plan. You might want to consider modification as those bonuses will probably be few and far between for a while.

[Flamingo]

This should easily be cleared up by your attorney. Obtain back up from your husband's employer that only 2 out of the 4 bonuses were paid for last year and that should be all you need. I don't know when you or your husband learned that he would be receiving only two bonuses out of the 4 but as soon as you had that information you should have contacted your attorney and this might have been prevented. Anytime there is any financial change in your status during a Chapter 13 (especially if it is noted in your Plan as to any special circumstances - i.e., turning over 1/2 of bonuses for each year), you need to immediately contact your attorney; if not, what you received is the consequence.

[deadbroke99]

Wouldn't the trustee know that a bonus is not guaranteed? I used to get a $4,000 bonus once a year but after two years, my employer stopped it. Everyone knows not to count on a bonus as it always depends on how well you and the company does.

[ready2puke]

Unless your Trustee has either a crystal ball or is a professional mind reader as a side job...I would think he would assume that you just didnt pay him...How would he know that you didnt get the bonus..I'm sure some folks might try to get away with something..
You'll be fine as soon as your trustee gets confirmation that you didnt get the bonus's. Keep us posted and good luck

[Flamingo]

Wouldn't the trustee know that a bonus is not guaranteed? I used to get a $4,000 bonus once a year but after two years, my employer stopped it. Everyone knows not to count on a bonus as it always depends on how well you and the company does.

It appears from the OP's posting that her hubby got these quarterly so it was incorporated into their Plan so it must have been an annual practice. Since it was a part of their plan, when there was a change that occurred they had to notify their attorney immediately upon learning of the change so the trustee would have been notified. A Chapter 13 plan is based upon your situation at the time of filing, not a year or two later. Trustees do not have crystal balls or listen to your phone conversations but if something is missing, they eventually find out.

[BnkrptcyLwyr]

From now on, each quarter, get a letter from your employer stating whether you received a bonus or not. Then, if you did not, file an affidavit stating that you received no bonus, with the letter attached. You should have no problem.

This is very easily resolved.

For the problem at hand, get the letter from your employer. File an affidavit saying that you didn't receive a bonus for the two quarters. The Trustee should withdraw the motion to dismiss. If you did not turn over any bonuses, then obviously you will need to rectify the situation.