Para legal wrong??

[Natalie1706]

I have a question about the stumulus payment and filing BK. We met with a para legal today who told us that if we filed a 7 we would not be able to keep our stimulus payment and that if we wanted to keep our car we would need to get current on it (one month behind) and that we would need to stay current for the life of the loan. Is there any truth to these two things??

[HHM]

1. This issue depends on how trustees treat the stimulus in your district. Some districts are taking the stimulus, some are not. By the letter of the law, unless your state has an asset exemption to cover the stimulus, the trustees can probably take it.

2. On the car, definitely YES, the para legal is absolutely correct. You must be current on the car going into the BK, and you must continue to make the payments for the life of the loan to keep the car (that issue is a no brainer). I am not sure where you would get the idea that BK allows you to have your cake and eat it too

[Cali]

I hope you weren't serious about the car question.

I have a question about the stumulus payment and filing BK. We met with a para legal today who told us that if we filed a 7 we would not be able to keep our stimulus payment and that if we wanted to keep our car we would need to get current on it (one month behind) and that we would need to stay current for the life of the loan. Is there any truth to these two things??

[momof5]

So you have NOT filed yet? Have you already received your stimulus?

How can a trustee take a stimulus payment that was received before filing?