Pay increase/ bonus question

[Freddy03]

Just my luck!!!

I was told yesterday that I will have more job responsiblities and I'm pretty sure once it's all figured out I will be given a pay increase. So it looks like I'm going to have to tell my boss about the BK and if they could hold of on the raise.

So if I file late Oct / early Nov when would it be safe to accept an increase?

I don't mind working harder without the pay I truly have a great job.

Also what about my Christmas bonus? Would that have to be turned over? It's not a huge bonus - a little more than a weeks pay. I usually receive it 2nd week of Dec.

Thanks

[Freddy03]

anyone

[rjmwx81]

There's a spot on the Schedule I where you have to list "expected changes in income" so you'd still have to list the raise there even if you hadn't received it.

[JSchrader]

The answer to this question really depends on a lot of factors. First, are you in Chapter 7 or 13? If you are in Chapter 13, then the timing of your raise probably doesn't matter. That is because you are legally obligated to update the court with changes in your income after they happen, and this may affect your plan payment unless you are already paying 100% to unsecured creditors through the plan.

In Chapter 7, timing matters a lot. Chapter 7 takes a historical approach to income to determine eligibility. So if you are above median income for your state, the key question is how much you earned in the last 6 months. This amount is then recalculate to reflect annual income, and then compared to your expenses. The proper strategy here is to try and file at a time when you made the least in the last 6 months. That said, you really should have an attorney to do this. You want to make sure that you reduce your income as much as you are legally entitled to, but no further. This is hard to do on your own. Consequently, I'm betting that you would probably save money over the long run if you had good legal counsel.

[gman]

The answer to this question really depends on a lot of factors. First, are you in Chapter 7 or 13? If you are in Chapter 13, then the timing of your raise probably doesn't matter. That is because you are legally obligated to update the court with changes in your income after they happen, and this may affect your plan payment unless you are already paying 100% to unsecured creditors through the plan.

In Chapter 7, timing matters a lot. Chapter 7 takes a historical approach to income to determine eligibility. So if you are above median income for your state, the key question is how much you earned in the last 6 months. This amount is then recalculate to reflect annual income, and then compared to your expenses. The proper strategy here is to try and file at a time when you made the least in the last 6 months. That said, you really should have an attorney to do this. You want to make sure that you reduce your income as much as you are legally entitled to, but no further. This is hard to do on your own. Consequently, I'm betting that you would probably save money over the long run if you had good legal counsel.

Agreed. Are you a 7 or 13? Let us know and we'll steer you in the right direction.

[SunshineGal]

Freddy, the trustee is going to request a copy of your 2010 tax return so they'll find out about the bonus and the raise. It's best to be upfront and plan accordingly.

[backtoschool]

Your raise will be factored into your "totality of circumstances", but it will not affect the means test if you have not gotten it yet when you file.

[Freddy03]

We are over the median but pass the means test and have a neg DMI. I'm hoping to file Ch 7 next month.

I could be rushing things because later today I was speaking with my boss and no mention of a pay increase was discussed. Maybe I was just wishful thinking...lol So if I don't receive a raise within the next few months I'll just wait till my next review date in July to bring it up.

But what about the Christmas bonus? Would the trustee want to take that?

Thanks