Should I file now or later? Bonus in end of July

[starting_over]

I don't know if I should file chapter 7 now or after I get a bonus at the end of July.

My company traditionally pays a bonus at the end of July for the previous fiscal year. The past two years the bonus was sizeable ($12,000 after taxes and $8,000 after taxes). I am no longer in sales and the bonus could be anywhere from $1000 - $5000 before taxes this year. If I file tomorrow, Monday, then I only have to submit the last 6 months of bank statements & paystubs. If I get my bonus in 1 month, will the trustee be looking at my current bank statements & paystubs ... or only what got turned in with the filing paperwork?

I realize that if I file after ... then that will be included in my income & might affect my means test. On the other hand ... I'm not sure If I file now & then end up with my work bonus if that will harm me & get the case thrown out or contested or turned from a no-asset case into an asset case.

Any advice?

[Help!]

I'd file now, or at least before August 1. The CMI on the means test will include the 6 month period ending on last day of the month before you filed, and if you're close on the means test it would be best to exclude the bonus.

We were not asked specifically about additional income at our 341 hearing, but the trustee did ask if anything in our financial situation had changed. Usually you are not asked for bank statements after the date of filing, but in our case the UST's additional documents included two months of bank statements after the date of filing... definitely not the norm.

[PaKettle]

If you don't have any big transfers or expenditures in the past few months, and have made payments on any recent such expenditures, then yes, by all means file now so the big bonus will not be an issue. Do not mention it, pretend you don't know about it unless asked. It's not really for SURE until you get it, so just act as if you don't know about it unless asked - if you are asked by the Trustee, you might want to tell the truth, though...

Mine did not ask about future income.
Good luck! And yes $5k or so could possibly throw you into a Ch. 13 if it had to be considered as part of your previous 6 months' income. So by all means don't let that happen. Discuss it with your attorney.

[Phillymanhere]

From what I can tell the goal is to file at a time when you can appear at the 341 meeting (about 2 weeks later) and be able to stand and say you haven't received any extra money, etc. To answer your question, I think you're much better filing now.

Trustees, I'm sure, know some of us will get better jobs in the future and some will get raises and bonuses later. But if they went driving down that road, they'd never see the light of day. They'd never be able to close a case. On the other hand, if you have already received the bonus by the time you file, then that's right in front of the trustee's eyes.

Good luck.

[Joe Farmer]

Isn't there a question in the petiton about this situation?

Like 'do you plan on having any large changes in income or expenses' in the near future", or whatnot? I'd be scared to file just ahead of getting such a huge amout on money. It sounds like such a risk- what if you file, and your 341 is delayed, yet you get that bonus in the interim, etc? Can you wait six months, do you have a pressing need to file now?

[starting_over]

So, today I found out that I did get a bonus. It was $5000 (before taxes) probably around $2500 after taxes. Not everyone gets bonuses, it's discrectionary at our company.

I currently get my paychecks direct depositied. The bonus would be direct deposited also, ... would it be advisable to leave it all alone or to stop the direct deposit & get paper checks so that I can deposit the paper check for the paycheck & hold onto the check for the bonus? I"m confused & not sure if it would be alright to switch from direct deposit to paper checks ... or if I should just leave everything as is.

Any advice?

[magyar123]

Ask your employer to issue you a paper check, and sit on it until you are discharged. Ask your employer to issue you a check that does NOT contain any language like "not valid after a certain date".

[AngelinaCat]

I agree with magyar123.