Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Bonus check two weeks after filing?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Bonus check two weeks after filing?

    I recieved a bonus from work today, approximately 2 weeks after filing Chapter 7. It is substansial and would certainly put me over the cash exemption. I have planned for most of it to go towards some necessary expenses like real estate taxes etc. If I deposit it in my bank, is it possible for the trustee to freeze that account and take it?
    Last edited by olysan; 11-30-2010, 11:21 AM.

  • #2
    The cash exemption is only for the day you filed. The pay you earn after filing day is separate from that.
    Filed Chapter 7 July 2010
    Attended 341 September 2010
    Discharged November 2010 Closed November 2010

    Comment


    • #3
      Originally posted by keepinitreal View Post
      The cash exemption is only for the day you filed. The pay you earn after filing day is separate from that.
      Does that mean that they can not come after my bonus?

      Comment


      • #4
        Hi olysan,

        I am not a lawyer, but in general, as can be confirmed by the lawyers on here, anything you make after filing is indeed yours. BK = snapshot in time, as it relates to exemptions, cash on hand, etc. Some of your schedules, etc. are forward looking, but in the more generic sense. Your bonus is yours....no trustee can take from what you make after filing, with the exception of tax refunds sometimes.
        Ch7 no asset Filed 11/23 341 12/21 discharged: 2/22/11 I am soooo totally not a lawyer, but i wish i had married one! Does that count for anything?

        Comment


        • #5
          When did you earn the bonus? Is it based on the entire year's work? the last quarter? Some trustees ask about year end bonuses, especially if your previous year's tax returns indicate you receive them as part of your compensation.

          If it's based only the work you did since filing, it's all yours. But if it's based on work you performed prior to filing it would be (in part or whole) "earned but unpaid" income as of the time of filing, which makes it part of the bankruptcy estate.
          There are two secrets for success in life:
          1.) Never tell everything you know.

          Comment


          • #6
            Do you have a lawyer, olysan? I would double check with him/her to see if you can amend and exempt it (or the lawyer may just tell you not to worry about it unless they ask for it, depending on just how big it is).
            Ch7 no asset Filed 11/23 341 12/21 discharged: 2/22/11 I am soooo totally not a lawyer, but i wish i had married one! Does that count for anything?

            Comment


            • #7
              debee has a very valid point. Be ready and able to answer truthfully should the matter be raised in the 341 meeting. The Trustee has every right to ask if your financial picture has changed since filing as well as ask for documentation. I can guarantee that if you are honest (and prepared) if/when asked, you stand a much better chance of staying in the Trustee's good graces. Receiving an unexpected bonus is a lot different that knowing your regular, expected quarterly or annual bonus was coming due a week after filing and "forgetting" to enter that as income earned but not yet received. BKlooker has good advice - ask your attorney if it will make a difference.

              Comment


              • #8
                I would mention the bonus but preface my disclosure with something along the lines of: "In these uncertain economic times, I was not aware that bonuses were even being considered by my employer this year...." blah blah.
                ~~ Filed Over Median Income Chapter 7: 12/17/2010 ~~ 341 Held: 1/12/2011 ~~ Discharged: 03/16/2011 ~~
                Not an attorney - just an opinionated woman.

                Comment


                • #9
                  I received a decent bonus the day after I filed (I knew I was getting it so my attorney filed the day before). I didn't have to list it on my forms at all since it wasn't part of the bankruptcy estate.

                  Comment


                  • #10
                    Originally posted by debee View Post
                    When did you earn the bonus? Is it based on the entire year's work? the last quarter? Some trustees ask about year end bonuses, especially if your previous year's tax returns indicate you receive them as part of your compensation.

                    If it's based only the work you did since filing, it's all yours. But if it's based on work you performed prior to filing it would be (in part or whole) "earned but unpaid" income as of the time of filing, which makes it part of the bankruptcy estate.
                    My bonus is based on how well the company did the prior year. My BK attorney told me it wasn't an issue. It didn't matter that it was based on the company's performance for 2009. What mattered is when it was paid out. Which was the day after I filed. It wasn't mentioned to the Trustee, just the change in my tax refund nor did the Trustee ask about any bonus'.

                    Comment


                    • #11
                      Can you use some or all of it up in expenses - things that perhaps you've put off for too long? New tires? Oil changes for the car(s)? Dental checkups? new eyeglasses? Etc, etc?

                      Comment


                      • #12
                        I also filed a chapter 7 and 3 weeks later my wife received a substantial bonus. She was allowed to keep the money because it was to the day of filing. At the 341 hearing, the trustee will ask you if you have any expected proceeds from lawsuits, tax returns but never asks about payroll bonuses. Also, your pay stubs are only up to the day of filing so there should be no record of future earnings.

                        Our bk was discharged and because we were timely (prior to the bonus, not after) we kept the much needed bonus.

                        Good Luck.

                        Comment


                        • #13
                          There are people on this forum who didn't have to give up any part of their tax refund, but that doesn't mean the trustee was not entitled to it.

                          A tax refund is property you are entitled to receive but do not yet possess at the time of filing. It is part of the "bankruptcy estate" when you file even though you might not have it listed anywhere in your schedules. The same applies to "earned but unpaid" income. 11 USC 541 defines property of the estate and you can read it here: http://www.law.cornell.edu/uscode/us...1----000-.html

                          In Missouri, you are generally able to exempt 75% of your "earned but unpaid" wages up to the date of filing. So the trustee is entitled to the other 25%. What you earn after you file is explicitly excluded from the bankruptcy estate. The key thing is when the income was "earned".

                          There isn't a one-size fits all set of questions/documents that the trustees use. Even within the same district, trustees' requirements are diverse. Variation in Sacramento: http://www.sacbankruptcytrustees.com/ Further variation exists on a case-by-case basis.

                          There are trustees who will want to see your most recent pay stub at the 341. Not the stub that includes the filing date, but the most recent one just prior to the 341. You can read about that in the 341 section of this forum, or in the Federal Rules of Bankruptcy Procedure 4002(b)(2). (http://www.law.cornell.edu/rules/frbp/rules.htm)

                          edit: I don't know how much, if any, of the bonus you would be able to exempt (presuming the trustee finds out about it).
                          Last edited by debee; 12-01-2010, 12:18 PM.
                          There are two secrets for success in life:
                          1.) Never tell everything you know.

                          Comment


                          • #14
                            I listed an annual bonus in my schedules. We get it in December and I listed what it was last year since the amount changes based on company pofits each year. Last year it was roughly a months salary before taxes. The trustee never mentioned it or asked me a single thing about it. Granted I'm not in a super high tax bracket, but I think it would have put me over the cash exemption. just. My experience but hope it helps! I also have no way of knowing if or how much my bonus would be until last minute, and that may be the same for you and may satisfy the trustee.
                            A fresh start is a beautiful thing. And I'm not an attorney, just opinionated!

                            Comment

                            Unconfigured Ad Widget

                            Collapse
                            Working...
                            X