Stimulus check Chapter 13?

[Carmella]

Unless you are in a 100% payment plan, it won't take any time off. It is just extra income that goes to creditors. I am hoping the government will say everyone gets it, regardless if they are in a bankruptcy. I thought about calling my congressman and asking him to include some type of provision in it (if that is even a thing).

I am in 100% payment plan.

[RockSteady]

Thanks justbroke. It’s bad enough when I need to go to a local food bank just to survive. I’m working, but even non-credit bills are getting tough in my hourly rate. I’ve stopped paying all CC bills as of this month. I was taking money out of my IRA to pay these bills, but it’s throwing money away since I’ve decided to file. I hate having to wait until next month when my prepaid legal plan from my job starts. I need help now on how to figure everything out. I need internet/cable and the provider I have won’t lower the bill. I’ve tried and there aren’t any other options when i live except for ATT; which is cheaper for the first year, but almost double in year two. I’ve tried antenna, but too far away from the towers. Should be the least of my worries. We received a temp $2/ hour increase at work, which will end 4/30. I’m still way under the means test.

[justbroke]

I wouldn't worry about it. Especially if you're not filing for some time.

[RockSteady]

I mean really, if I spend the money, it’s gone. I barely make enough money to pay basic needs of life.

[RockSteady]

I probably won’t file for a few months. I’m just trying not to get sick, as I work in a huge warehouse with many people.

[justbroke]

Will the BK court/trustee take the money from me if I file a Chapter 7? Do I need to delay filing until I spend the funds? I understand there maybe a check mailed second week of April and perhaps one in May. The funds would allow me to stock up on food and much needed clothes as I have lost so much weight. I have no intention of fraud, I just don’t know what to do.

See the other posts. I personally hope that a Trustee wouldn't do this, but there was at least one who successfully done this during the 2008 Economic Crisis and stimulus checks.

I just want everyone to keep going and keep trying. Let's worry about the checks later. For chapter 13s, I'm sure that the attorneys are likely inundated with questions about whether the Trustee would take the money. Your attorney can always file a Motion to Keep Stimulus or something similar, especially where you need the money to cover losses.

For Chapter 7s, it may just come down to when you filed.

[justbroke]

[moderator moved your question here to avoid duplicating threads]

[justbroke]

What about a Chapter 7?

It depends on when you filed. If you filed Chapter 7 before you became entitled to receive the stimulus, then it is not property of the bankruptcy estate. I really host that Trustees don't touch this money as one successful has done in the Wooldridge case.

I think that Congress should include language to explicitly remove any of this money from reach of any creditor or to be used to pay any debt. Would be nice.

[RockSteady]

What about a Chapter 7?

[RockSteady]

Will the BK court/trustee take the money from me if I file a Chapter 7? Do I need to delay filing until I spend the funds? I understand there maybe a check mailed second week of April and perhaps one in May. The funds would allow me to stock up on food and much needed clothes as I have lost so much weight. I have no intention of fraud, I just don’t know what to do.

ETA: I am awaiting on a consultation with a lawyer to happen next month. I’m just a nervous wreck right now with all that is going on.

[lostinnola]

That stinks especially since we owe taxes again. It would be great just to dump possibly $2,000 and have the taxes almost totally paid off. If the trustee takes it then that will knock about 1 month off our 60.

Unless you are in a 100% payment plan, it won't take any time off. It is just extra income that goes to creditors. I am hoping the government will say everyone gets it, regardless if they are in a bankruptcy. I thought about calling my congressman and asking him to include some type of provision in it (if that is even a thing).

[Carmella]

That stinks especially since we owe taxes again. It would be great just to dump possibly $2,000 and have the taxes almost totally paid off. If the trustee takes it then that will knock about 1 month off our 60.

[lostinnola]

I figured we wouldn't get to keep it I did ask my lawyer but he said to contact him when/if it shows up in my bank account.

[justbroke]

Well, there are some cases which say that it is property of the Chapter 13 bankruptcy estate and subject to administration.

See In Re Wooldridge. If the stimulus is actually "disposable monthly income" (DMI) exceeding the debtor's expense, then it can be property of the Chapter 13 bankruptcy estate and subject to surrender to the custody and control of the Trustee.

Now, would that be a smart move by the Chapter 13 Trustee? I think not. But it has been done (in 2008 during the last financial crisis).

[shipo]

I kinda doubt it; I image it will be viewed much the same as a tax return (which has certain thresholds before some of the funds are turned over). That said, this is something so new I rather doubt anybody will be able to give you a definitive answer.