Severance Package before discharge?

[BillyRip]

I have been waiting for this package for 5 or so years, and now it gets here in the middle of my BK7, which still might be forced into a 13.

Here are the details...

My company is looking for volunteers to leave the company with FULL termination severance packages.

Bottom line...

My GROSS payment would be $128K.
Govt would hold 40% per lump sum payment laws, netting me about $77K.
At tax time NEXT YEAR, I would get about $28K back.

How would the BK Courts handle this? Am I pretty much forced to turn this down? My debts in the BK are about $80K.

I have emailed and called my Atty but he's probably in Mexico on vacation somewhere.

[chloe0724]

How far away from discharge are you? Could you have them postpone the offer till then?

[BillyRip]

How far away from discharge are you? Could you have them postpone the offer till then?

The payment would be made after my discharge but I thought if I "came into money" within 6 months, I had to notify the courts.

Plus... Technically, I would be voluntarily resigning.

[fltoo]

Here we go again, LOL.

Only money they can take in the 6 months after filing is an inheritance, divorce settlement money or insurance proceeds.

But, since you know about this beforehand and it was offered beforehand, the trustee will most likely go after the money and get it.

Assuming a chapter 7, can you wait out the 6 month period?

[slam22]

The payment would be made after my discharge but I thought if I "came into money" within 6 months, I had to notify the courts.

Plus... Technically, I would be voluntarily resigning.

I think since you have already filed Chapter 7 and completed your 341 hearing and are less than 1 month away from your discharge, and the offer came after the hearing I don't believe you are under any obligation to disclose this to the trustee or the BK court. The trustee had an opportunity to ask you about additional or anticipated income at your hearing and it sounds like they did not, I think you are probably OK. Wait for your discharge, take the buyout and move on with the rest of your life.

[fltoo]

Slam, good catch on the signature line.

Seeing now that you already filed and had your meeting, I also think the package is safe from the trustee.

Only problem is, what makes you think you might have to go chapter 13?

[AngelinaCatHub]

Slam, good catch on the signature line.

Seeing now that you already filed and had your meeting, I also think the package is safe from the trustee.

Only problem is, what makes you think you might have to go chapter 13?

[BillyRip]

Slam, good catch on the signature line.

Seeing now that you already filed and had your meeting, I also think the package is safe from the trustee.

Only problem is, what makes you think you might have to go chapter 13?

I'm just over the median and just scraping by on the means test.

I had NO IDEA this offer was coming, so when they asked about future income I said "no". My employer only made the offer Monday, and I have to decide by this Tuesday.

The lump sum payment would be made by June 1.

If I can get this discharge and this package, my life will be so much better and on the way to doing something fun for a living!

I appreciate all of the input folks. I love this place!

[BillyRip]

You are dead on... In 3-5 mos, a lot of us feel we'll all be let go (about 500 people), and everything shipped out of the U.S.

I really doubt I'll even get the chance to say yes because people with more seniority are going to take it.