Work Bonus Question

[johnson207]

We are due to go to a meeting with a trustee early March. I should have a bonus due (varies yearly, based on performance). Last year, it was just under 5k after taxes. That money was used to service our credit card debt, until we decide to file. 

I have tried reaching out to my attorney, but he has been unavailable. When we last spoke, he mentioned that the trustee will likely want a % of the bonus. I have been trying to reach out to him for him to elaborate on what the % means and how it is derived. It should be paid, ideally, mid-March.

Does anyone have any experience with bonuses and Chapter 13? 

[SoulMaster]

I'll check the dockets tomorrow, but IIRC in NV, the court will take everything but $1000.  I've been away from the office for awhile though, so I might be thinking about tax returns.

Here's another way to look at it though; you used to be putting it toward CC's so it's not like you would have had the $ anyway, eh?  If you're in a full-repay plan, this will cut months off your plan (depending on what your monthly payment is, of course).  If not, then at least this year (and for the next few) you get to keep some of it, rather than sending the whole thing of too the creditors.  Either way, it's a win!

(I digress, I'll get the real # tomorrow).

-SM

[johnson207]

I appreciate the feedback. I have not seen anything from our attorney yet regarding the payments, so I am feeling a little in the dark. We did get an estimate, but that was a few weeks ago.

Any information you can find would be great.

[SoulMaster]

Here's the answer:

Your attorney should have disclosed your bonus (assuming it's annual and fairly regular) to the Trustee as part of your income calculations.  If this happened properly, then the bonus money should have already been averaged out and worked into your plan payments.  If it didn't happen, when the bonus is disclosed they'll average it out and your payments will go up.   According the attorney I asked, "they're not just going to take his bonus, it gets worked into the payment".  As always, I'm in NV, rules can vary state to state.

The math I did in my earlier post was regarding tax returns (which I thought might be the case).

Cheers,

-SM