bonus check after discharge

[Jovigirl22]

Me and my husband are filing a Chapter 7 BK next week. My husband works in the auto industry which has taken a horrible hit in the past 10yrs, but before that, we used to get huge bonus checks every March...all of the "big three" did this, was an industry standard. We stopped getting the checks for several years, but last March received $300 after taxes, which is included in our gross income. If we file in Nov, I am assuming we will be discharged by February 2011. Now, there is talks of his company making good profits, and there could be a decent check given in March 2011. Since the bk trustee is entitled to my tax refund based off of 2010 income, would they be entitled to this bonus check as well? They call it a profit sharing check, and the one from March 2010 shows the 2009 gross income as the factor for determining the amount. Also, I should add that a factory is FULL of RUMORS. In the past 10 yrs we have one week heard that the plant would be laying off, and the next week hear that major overtime is coming........just for neither to be true. I certainly dont want to tell my attorney that it is rumored we are getting a bonus check after discharge if it is just a rumor. Thanks in advance for your repliles.

JH in Indiana

[tobee43]

the court and i'm certain your atty is looking for factual information, certainly not rumors.

personally, i think you can't hide something unless it really exists...and this doesn't. if you answered all your questions honestly on your petition at your time of filing you should be fine....i'm certain there are those out there...sometimes i think they work in trustee's offices...LOL!! that tell you....oh...tell them everything that could possibly happen in the future financailly like you have a cystal ball someone...you're in your aunts will and going to inherit 5.7 mil...but at the time of filing you didn't even know you had a aunt...but you should tell the trustee you could possible have a lost aunt somewhere in the universe that could and should or would leave you this money.

my vote is..unless it happened it's not here to report.

[Fallonedward]

I work in the auto industry as well and have taken a pay cut the last 5 years running.

My company is filled with rumors. In the auto industry until that check hits your checking account its all in the realm of "what if"

Me and my husband are filing a Chapter 7 BK next week. My husband works in the auto industry which has taken a horrible hit in the past 10yrs, but before that, we used to get huge bonus checks every March...all of the "big three" did this, was an industry standard. We stopped getting the checks for several years, but last March received $300 after taxes, which is included in our gross income. If we file in Nov, I am assuming we will be discharged by February 2011. Now, there is talks of his company making good profits, and there could be a decent check given in March 2011. Since the bk trustee is entitled to my tax refund based off of 2010 income, would they be entitled to this bonus check as well? They call it a profit sharing check, and the one from March 2010 shows the 2009 gross income as the factor for determining the amount. Also, I should add that a factory is FULL of RUMORS. In the past 10 yrs we have one week heard that the plant would be laying off, and the next week hear that major overtime is coming........just for neither to be true. I certainly dont want to tell my attorney that it is rumored we are getting a bonus check after discharge if it is just a rumor. Thanks in advance for your repliles.

JH in Indiana

[drowningNIL]

Our trustee asked us if we had a windfall other than income would we let him know. IMO a bonus through employment is income. We also used to get bonuses and have not for a while now. 2011 may be better based on 2010 but we are only speculating and hopeful at this point. March is a ways away. Never know what the future will bring. We found that out for sure LOL.

[tobee43]

Our trustee asked us if we had a windfall other than income would we let him know. IMO a bonus through employment is income. We also used to get bonuses and have not for a while now. 2011 may be better based on 2010 but we are only speculating and hopeful at this point. March is a ways away. Never know what the future will bring. We found that out for sure LOL.

ahhhhhh...didn't we all drowning NIL!!

[tcreegan]

Hi all,

Had a thought (might have sprained something)....since the bonus is income and after discharge, for the sake of Schedule I couldn't you average it into the whole year? It is not the means-test with the strict 6 month look-back.

Any of the gurus care to weigh in on this?

Tom in Colo

[ccsjoe]

I'm just tacking on to this thread, so my apology for the late arrival. Tom, your sprain has served you and the OP well. You absolutely can average the bonus out as part of income on I. However, and perhaps more importantly, since there is no certainty and only speculation that you may get a bonus, I see no reason to list it. Allow me to "illucidate" for you (term from "Tinkerbell, the movie"). There is a possibility that I will get a different job at a higher rate of pay next month. There is no certainty, no offer, no nothing, only a possibility. Why in the world would I list that as a potential change in income?

[Freddy03]

I'm not going to list my "rumored" bonus when we file because who knows it could be a canned ham.....lol Unless I actually receive it prior to filing then I'm ignoring the rumor.

[Jovigirl22]

thanks for all of the replies. I wasnt concerned with having to list a potential check on schedule I, was more thinking that if they can take my income tax refund that I will receive post discharge, because it was based off of 2010 income, then would a bonus check received in March 2010....post discharge and ALSO based off of his 2010 gross income, be "taken" by the trustee?

[tobee43]

Hi all,

Had a thought (might have sprained something)....since the bonus is income and after discharge, for the sake of Schedule I couldn't you average it into the whole year? It is not the means-test with the strict 6 month look-back.

Any of the gurus care to weigh in on this?

Tom in Colo

well i'm no guru...however, i will put it in what i think simple terms...

how can one average 0...nothing... nadda...a false hope....into any calulation? or even a projected calculation?

certainly if one did actually received a bonus, they might be able to average it into their means test based on a monthly break down. however, no matter how you view this situation it comes do to simple number.... 0 + 0 still equals 0...for this OP.

on the brain sprain tom...i would think if it were actual, it could work!