a Paystub question.

[screwedupbyRE]

I was told by attorney that gross income is calculated from last 6 paystubs.

The problem is I get all the bonuses in the first half of year. That jackup my salary for more than $1800 per month compare to yearly gross. It could cause problem while calculating mean test.

On the second note, if someone has knowledge abt RSUs!!! (Restricked Stock Units). I have approx 325 RSUs matured in April and my employer shows that numbers in the paystub. It increases my monthly gross by another $1200 per months. These RSU are also shown in my UBS account, which I'll eventually disclose to the trustee....

how do I handle it? anyone experience it? can I not show RSUs in my paystub and show that only as asset to trustee or vice-versa?

Thx

[getouttadebt]

Unfortunately, bonuses count as income and must be included in your means test calculation if they were paid in the 6 months prepetition. Maybe you will need to wait until those bonuses fall off the 6 months average before filing.

Restricted Stock Units have value and if awarded to you from your employer, and if they are substantially vested, then they are included as income. I have faced similar challenges with Employee Stock Purchase Plan (ESPP) shares and NQSO (Non-Qualified Stock Options) skewing my income abnormally high.

I am not 100% positive that your RSUs are the same, but I would talk to your attorney if you have one.

Good luck to you,
getouttadebt

[screwedupbyRE]

Thx for your response.

So, did you show ESPP and NQSO as your income or asset?

[getouttadebt]

I did not show as income in the Means Test calculation. Attorney for the UST merely took my Dec 31, 2007 paystub and subtracted June 30, 2007 paystub to come up with 6 months worth of income -- then divided by 6 to arrive at his calculation of CMI (Current Monthly Income). Due to ESPP and NQSO having been exercised and sold during the period it overstated my monthly income by $3,500 per month. I was already over the median so they hit me initially with the 10-day Statement of Presumed Abuse.

He filed his Motion to Dismiss and we opposed the motion. My attorney tells me he went over the Opposition with the attorney for UST, and my attorney told me that the UST attorney didn't realize the extra income was the result of exercising options. He continued the hearing date for 2 weeks so he could study our opposition. My attorney thinks he will utlimately withdraw his Motion to Dismiss. We took the angle that the ESPP and NQSO were non-recurring income items and they were sales of assets used to stay afloat and avoid BK. In the end, we just ended up paying creditors for a few more months than normal, etc.

I hope to know more next week...

Does this answer your question?

getouttadebt

[screwedupbyRE]

it helped. I'd keep my options, ESPP and RSUs as is and not exercise until I file for chapter 7 (planned for mid July). Though I'm expecting an additional property tax bill in July and have no money to pay. According to my attorney I should not touch these three assets to pay property tax. I believe he's trying to avoid similar situation for me, as you have been in.

I'll ask him again if I can exercise any one of it to pay proerty tax.

Keeping these items, plus other assets at home, exceeds my total exemptions.... and that worries me.

Thanks for your reply. It helped.

[getouttadebt]

If you can't fully exempt all your stock options, then just remember that they will become property of your BK estate once you file. They can sell them if they are marketable securities with value. Make sure to get a clear answer from your attorney on this since different states and different districts do tend to behave differently. Hope you can keep them all.

getouttadebt