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Stimulus check Chapter 13?

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    #31
    Right. I don't understand it quite either. I really hope this ends up being an across-the-board decision, as my trustee will likely take it. I guess they are known for scrimping every penny and being pretty ruthless as far as trustees go. For me, this stimulus would be almost 3 months of trustee payments.

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      #32
      Originally posted by lostinnola View Post
      So what exactly does that mean? People in chapter 13 would get to keep it?
      It sounds like it, but you know Chapter 13 Trustee may say that's for new plans or modified plans. That would be a shame, but we do know Congress' intent is that this money is not "disposable income" for purpose of a Chapter 13 plan.
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      I am not an attorney. Any advice provided is not legal advice.

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        #33
        Hopefully they clearly state that it NOT be counted as disposable income along with clearly stating that it can't be taken by trustees in existing and new bankruptcy cases - just so there's no grey area. Would the U.S. Trustee have the final say above anything the states would try to do?

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          #34
          Yay! Stimulus past through the senate - hopefully passes through the house on Friday.
          Filed Chapter 13 - 07/20/12
          Discharged 8/2/16

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            #35
            Yes, I am very excited about this too. I owe the government about 2k this year because of Mr. Trump's cap on deductions and that I no longer have interest from my student loans. So, once they send me this money its going right back to them. My BK specifically said any money I get from bonuses or tax refunds was mine to keep... so, like someone else in this thread said, they would have to pry it out of my cold dead hands.

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              #36
              It's not a tax refund. It's a tax credit and the law was specifically crafted to try to make sure this is not counted as "income" for purposes of bankruptcy. There's a bunch of language trying to dance around this potential issue.
              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
              Status: (Auto) Discharged and Closed! 5/10
              Visit My BKForum Blog: justbroke's Blog

              I am not an attorney. Any advice provided is not legal advice.

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                #37
                From what I've seen, its a an advance on future refund. But either way... I am not planning on giving mine up.

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                  #38
                  Originally posted by NoMoney30 View Post
                  From what I've seen, its a an advance on future refund. But either way... I am not planning on giving mine up.
                  It's an advance on a future tax credit, but if you didn't deserve the entire amount, you won't be charged for the overpayment (which is nice). If they miscalculated it and you should have received more, you'll receive the difference. It seems, to me, that they thought about this a little.
                  Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                  Status: (Auto) Discharged and Closed! 5/10
                  Visit My BKForum Blog: justbroke's Blog

                  I am not an attorney. Any advice provided is not legal advice.

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                    #39
                    Agreed, in my situation since I always owe them money though they will probably be like sorry we gave you too much and now you owe us more money. I'm still totally annoyed at my 13 plan and how much they are making me pay... so nobody is getting any more money from me unless they subpoena it or something.

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                      #40
                      (referring to the statement that if it was miscalculated/didn't deserve you won't owe) That's still all confusing because this year I filled out the new 2020 W4, which is supposed to make it so I don't get a refund. So, if I don't get a refund how will they offset it...I will owe it back? (even assuming it doesn't get taken by the trustee - which is even scarier - having to possibly pay back money I never had in the first place, eek)

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                        #41
                        This is a tax credit which is being advanced. If, after doing your 2020 taxes (in due APril 15, 2021) you find that they gave you too much advance of the credit, then you won't owe any of it back.

                        (I think this was their example, or an example.) Say that you filed your 2018 taxes with income of $40,000 and single, If you did not file your 2019 taxes, the IRS will base it on that number and give you $1,200. If you later do your 2019 taxes and you earned $100,000, then you were not entitled to the tax credit (as it phases out to $0 at $99,000/year). However, they added language that if they overpaid the tax, then your tax liability would be $0 when you actually calculate the tax credit on your 2020 taxes.

                        If you had already filed your 2019 taxes and you were single with an income of $100,000 then you would get nothing.

                        They just don't want to penalize people if they were overpaid based on their 2018 income.

                        I know it's confusing. Reading the entire CARES Act bill is confusing.
                        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                        Status: (Auto) Discharged and Closed! 5/10
                        Visit My BKForum Blog: justbroke's Blog

                        I am not an attorney. Any advice provided is not legal advice.

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                          #42
                          Then there are folks like my wife and I; our 2018 income was maybe $30,000 higher than our 2019 income (my income went up a bit, she got laid off and then got a new/lower paying job), and that will probably be the difference between getting the full $2,400 versus having some prorated payment. Since our accountant has yet to finish preparing our taxes, they obviously have yet to be filed. Looks like we might get hosed.
                          Latent car nut.

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                            #43
                            The plan’s provisions are very simple. Adults would get $1,200 each and children $500 each. At higher incomes, the checks would get smaller: The benefit would start decreasing at a rate of $5 for every additional $100 in income. The phaseout starts at $75,000 in adjusted gross income for singles, $112,500 for heads of household, and $150,000 for married couples filing jointly; it would phase out entirely by $99,000 for singles and $198,000 for couples (with no children).

                            Source: https://www.vox.com/future-perfect/2...nment-approved
                            So for married couples that filed jointly, it phases out at $198,000. The math is pretty simple;
                            • First, this is based on your Adjusted Gross Income (AGI) and not your W-2 income! That helps for a lot of people.
                            • If you were married and filed jointly in 2018/2019 and your AGI was less than $150,000 then you'll receive the entire amount of $1,200 per person ($2,400)
                            • If you were married and filed jointly in 2018/2019 and your AGI was greater than $150,000 then you'll receive the entire amount $2,400, less 5% of every dollar that you earned over $150,000 with the entire amount phasing out at $198,000. For example:
                              • your 2018 AGI was $175,000
                              • The math for this is $2,400 - ($175000 - $150000) * 5% (where $175000 - $150000 is the amount "over" the phaseout)
                              • That makes your total stimulus check $2,400 - ($25,000 * 5%) = $1,150.00.
                              • Yes, you would get $1,150 with that income.
                              • If you earned $198,000 or more, as a couple, you would receive $0 (but see the child tax credit)
                            • If, on your 2018/2019 "filed" income tax, you had a "child" (under 18) then you'll receive an additional $500 for each child. It's not clear if you'll still receive the child tax credit if you exceed the income guidelines.
                            At least that's the way it looks right now.
                            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                            Status: (Auto) Discharged and Closed! 5/10
                            Visit My BKForum Blog: justbroke's Blog

                            I am not an attorney. Any advice provided is not legal advice.

                            Comment


                              #44
                              @Justbroke - I think you've explained it very well. Thank you.
                              Filed Chapter 13 - 07/20/12
                              Discharged 8/2/16

                              Comment


                                #45
                                Thanks for all the information concerning the stimulus checks, I was worried and wondering if I would have to pay it back as well. Glad someone put some thought into it for us Chapter 13 folks. Glad to see so much discussion/plain bill language on the forum it really helps. Everyone take care and stay safe!

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