Stimulus check Chapter 13?

[gremlin]

Im on a CH13 payment plan now (2 years in). They will have to pry that money from my cold dead fingers if they want it.. Seriously though, my income is being cut in half probably for the next 2 months at least so they can t tell me its "extra" income.. Wont be enough to make me whole for a month. If a trustee pushes anyone for this money, they deserve a good swift kick in the nuts.

[lostinnola]

Checks are supposed to arrive this week for many of us. Has anyone heard anything about getting to keep them from their lawyer or trustee?

[justbroke]

A friend of mine shows a "pending" deposit of $1,200 in her checking account which is to post on Monday. So, I guess that some people will have it on Monday, April 13th.

As for keeping it, it will depend on your specific Chapter 13 Plan and your Chapter 13 Standing Trustee.

[lostinnola]

A friend of mine shows a "pending" deposit of $1,200 in her checking account which is to post on Monday. So, I guess that some people will have it on Monday, April 13th.

As for keeping it, it will depend on your specific Chapter 13 Plan and your Chapter 13 Standing Trustee.

So what exactly will that process look like? Will my lawyer have to file something or does he just e-mail the trustee and ask him about it? I was told to wait until I got it. I am not in a 100% plan and I turn over tax returns.

[justbroke]

It depends, that's the problem. Some debtors in "some" districts may have already been notified by the Chapter 13 Trustee, or through their attorneys, that the Chapter 13 Trustee does not intend to take the money. It's just too specific to both a debtor's plan, district, and Trustee to say anything at this point. I'm sure the attorneys are going to start asking questions soon.

[gxr1000]

https://www.justice.gov/ust/file/car...e.pdf/download

This is from the US Trustee office and might help shed some insight as to what the individual trustees might do.

I filed in the Western District of Oklahoma, and my attorney told me that the trustee will not be trying to recover the CARES Act payments. Like anything else Chapter 13, I'm sure this will vary by district.

[lostinnola]

https://www.justice.gov/ust/file/car...e.pdf/download

This is from the US Trustee office and might help shed some insight as to what the individual trustees might do.

I filed in the Western District of Oklahoma, and my attorney told me that the trustee will not be trying to recover the CARES Act payments. Like anything else Chapter 13, I'm sure this will vary by district.

So if I read that correctly, they said almost everyone should get to keep the money and if they decide to to after it they have to get approval from the US Trustees office?

[Slipp20]

That's how I interpreted it lostinnola. Our trustee sends a letter at the end of each calendar year summarizing total payments and reminding us that any tax return amount must be turned over to the trustee and we need to petition to be able to spend any of it. I expected to receive a letter again if they decided to take it. I emailed our attorney but haven't received an answer yet. I imagine they're inundated with questions.

[Colorfulstom]

I was told by my attorney office that I get to keep the stimulus payment.

[Carmella]

I called my attorney's office and they said to keep the check also. She doubled checked just to make sure. I am thankful for the stimulus, but bummed that it will have to go mostly to paying the IRS and my state and local taxes. We still owe from 2018 and owe more in 2019 to the IRS. I won't put all the money into it since my husband needs glasses and we have a plumbing problem. I think if I pay state and local for 2019 and put a bit on 2018 IRS that's a good start.

[NoMoney30]

I called my attorney's office and they said to keep the check also. She doubled checked just to make sure. I am thankful for the stimulus, but bummed that it will have to go mostly to paying the IRS and my state and local taxes. We still owe from 2018 and owe more in 2019 to the IRS. I won't put all the money into it since my husband needs glasses and we have a plumbing problem. I think if I pay state and local for 2019 and put a bit on 2018 IRS that's a good start.

Don't feel bad... I shot myself in the foot as I normally do owe the IRS every year but it was greatly offset by my mortgage interest and my student loan interest... in 2018 I only owed them 527 dollars and I got back like 1400 from state...so it was easily covered. But now that I'm in bankruptcy and my student loans are not getting paid at all, I have no student loan interest payments. So, when I filed my 2019 taxes (and the lovely new cap on how you can't go over 10k in credits) I owe them 2,200 dollars now. This is going to screw me over for the next 3 years cause I dunno how I'm going to pay it in the future. I'm saved this year because I'm getting 2,900 in the stimulus relief... but yea, still have many years left on my 13.

[nick117]

I have already received and spent my stimulus check april and will file Pro Se chapter 7 in May. In which income schedule do I report that or better yet do I have to ?

[justbroke]

I have already received and spent my stimulus check april and will file Pro Se chapter 7 in May. In which income schedule do I report that or better yet do I have to ?

There's nothing to report unless you have cash remaining from the stimulus check in the bank at the time that you file.

[Witchywitch]

That is exactly what I stated many times above. Some enterprising Chapter 13 Trustee "could" try to say that it's only for confirming a Chapter 13 Plan. But clearly, Congress intended for this stimulus to not be income, for purposes of a Chapter 13 plan. We'll have to wait and see. I would think that the supermajority of Chapter 13 Trustees are not going to touch it, but some Chapter 13 Trustee may try to grab it from all the Chapter 13 debtors.

Does that mean we're safe? Our case is still not confimed. Cannot even contact the unemployment office since we have a problem filing online.

Be safe everyone!

[justbroke]

See https://www.bkforum.com/forum/before...-not-protected

I was just perusing the United States Trustee's website and noticed this notice which was sent to the Chapter 13 Trustees. See the thread to read and respond if you choose.