Some of you will recall I left my 341 meeting with a question re: some "outside income"...something actually very similar to life insurance commissions. Two attys. told me that there was no chance of keeping it, that the Trustee would view it as an asset and take it for as long as It was paid or until all of my debts were paid off. The amount in question is about $13,000 a year so I was interested in the outcome. My atty. believed that on the way the contract was drawn up we stood a chance of my keeping at least a part of it. At the 341 on Dec. 8th, the trustee told my atty to submit his thinking and a proposal w/in 2 weeks.
My atty called me on my cell phone yesterday while I was at the Dr.s office having blood drawn (Seemed like an appropriate time to talk about the Trustee)
Now the good news. The Trustee offered to split the after tax income with me through the end of 2006. I am having my tax acct submit a letter based upon my 2004 income taxes stating what % went to Fed., the 15+% that goes to SS Self Employment and the 3% which goes to the state. The total tax will come out somewhere between 36% and 46%. I lnow that for this year I will come out much better than that, because I tried a small business which showed about a $2000 loss which will offset the SS Self Employment tax and I will be in a lower tax bracket for 2005 and most likely 2006.
Sounds real good to me. My atty. cost $100 more than the 2 who weren't even willing to fight for it and gave me super service in filling out the forms. Definitely the best $100 I've spent this year. By golly, even Lightning would be forced to agree that it was an "investment" which paid off. (Of course I could have put that $100 in a place called a bank in something called a savings acct and gotten the cheaper atty.)
Cheaper Atty. $100
Savings Acct $100
Savings acct at end of year $102
Investing in my atty. $5200
Beating Lightning's irrefutable logic Priceless!
Sorry, I know that last part wasn't nice, but I just couldn't resist. Art
My atty called me on my cell phone yesterday while I was at the Dr.s office having blood drawn (Seemed like an appropriate time to talk about the Trustee)
Now the good news. The Trustee offered to split the after tax income with me through the end of 2006. I am having my tax acct submit a letter based upon my 2004 income taxes stating what % went to Fed., the 15+% that goes to SS Self Employment and the 3% which goes to the state. The total tax will come out somewhere between 36% and 46%. I lnow that for this year I will come out much better than that, because I tried a small business which showed about a $2000 loss which will offset the SS Self Employment tax and I will be in a lower tax bracket for 2005 and most likely 2006.
Sounds real good to me. My atty. cost $100 more than the 2 who weren't even willing to fight for it and gave me super service in filling out the forms. Definitely the best $100 I've spent this year. By golly, even Lightning would be forced to agree that it was an "investment" which paid off. (Of course I could have put that $100 in a place called a bank in something called a savings acct and gotten the cheaper atty.)
Cheaper Atty. $100
Savings Acct $100
Savings acct at end of year $102
Investing in my atty. $5200
Beating Lightning's irrefutable logic Priceless!
Sorry, I know that last part wasn't nice, but I just couldn't resist. Art
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