Severance AFTER discharge question....

[dbryant]

There is a possible chance that i may be laid off in the next 6 months. We are filing Chp 7 on Friday. IF after i am discharged, i am laid off, and receive a severence, will it throw any red flags AFTER? I have been at the company for a while, so the severence will be more then $10k. I have heard IRS gets alerted whenever a deposit over $10K is deposited. I am going to discuss this with my lawyer on Friday, but wanted to see if anyone had an answer on this forum.

Thanks,

[magyar123]

If it's a clear cut, no assetts Chapter 7 case that you're filing, chances are that you will get discharged sometime in March, and closed soon afterward, your severance pay should be safe. At the 341 hearing - if the trustee asks you if you expect any major changes in your income you may say that you might be laid off, but do NOT volunteer the information regarding the severance pay.

[njguy1972]

The severance is supposed to carry you until you get a new job. He cannot expect you to be able to get a new job before the severance runs out.