Stimulus rebate / tax refund - What happens to it in bankruptcy?

[Getting By]

Does anyone live in Nebraska? If so, does the Trustee take our rebate check?

[Stilltheone]

If someone hasn't heard yet if they can use the stimulus check or not, is it safe to spend it? Does it need to be spent on non-luxury items? We filed on 4/11 and our 341 isn't until 5/28.

Our attorney sent us an amended exemption form including our stimulus. Our 341 isn't until 5-15 and we should get our rebate before then.

I'm spending it how I choose. I still have half of my daughter's tuition to pay for and the rest is going for various things.

[KKAB]

If someone hasn't heard yet if they can use the stimulus check or not, is it safe to spend it? Does it need to be spent on non-luxury items? We filed on 4/11 and our 341 isn't until 5/28.

[getouttathehole]

Well I hope the Kansas chapter 7 trustees are doing the same!!!

[lrprn]

I emailed our Ch 13 lawyer and he confirmed that the three Ch 13 trustees in our state (Kansas) have agreed they are NOT going to take stimulus checks from their filers.

Hope your state's trustees all decide the same....my fingers are crossed for everyone!

[justplaintired]

http://www.irs.gov/app/espc/qualification.do

I found this official calculator if anyone's interested. DH ss ends in 09 so it should be soon for us. Can't wait to get stuff done and then to file. Getting very nervous file date won't be far off now. Soon as all repairs on done on cars and house, we will file, and take all receipts with us just in case trustee asked what we did with our stimulus check. Planning on using it for things we won't be able to get done without it.

[Stilltheone]

Mike--

I read that ALL direct deposits were going to be done this week, THEN checks will be mailed out afterwards, starting May 9th.

They said that direct deposits would be finished first, then checks mailed. The IRS hasn't released an "offical" new schedule.

[MaxedOut]

I just wanted to mention that someone we know got their direct deposit Saturday morning, his last two digits of his social is 00. So technically it has begun.

[Cali]

Rebate delivery schedule

Direct-deposit payment All sent by May 2

Paper check

If the last two digits of your Social Security number are: Your tax rebate check should be in the mail by:
00-09 May 9
10-18 May 23
19-25 May 30
26-38 June 6
39-51 June 13
52-63 June 20
64-75 June 27
76-87 July 4
88-99 July 11

[cirnrab]

Unfortunately being declared no asset has nothing to do with your stimulus rebate which will arrive after your case was filed. If you're lucky, then your rebate check will arrive after your case is closed. Then there's no question you can keep it.

However, if the check arrives while your case is still active, then your trustee could justify taking the rebate because he/she is in charge of your financial estate from the day you file until the day your case is closed.

Right now no one really knows how ch 7 trustees are going to treat the stimulus payments. Has your lawyer given you any idea about what to expect?

Well I Think I'm going to close my bank account on monday, so that way I won't get the direct deposit. The paper check won't come until after my case is discharged and closed. I just give up!

[MajorMike]

IRS Rebate Latest Info

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Friday, 4/24/08 UPDATE: Rebate Checks begin Monday!

This news almost made me fall out of my seat: The IRS says it is ahead of schedule and will begin sending out the Stimulus Rebates beginning Monday April 28th. When is a Government agency ever ahead of schedule?

The IRS says it will begin Direct Deposits of Rebate Checks Monday, and hopes to have the money in the bank accounts of the first 8 million taxpayers by Friday May 2nd.

The IRS says it will start direct deposits this Monday, April 28th for people whose Social Security Number ends in 00 through 20.

SS ends with 21-75? You'll get your deposit starting Friday May 2nd.

SS ending in 76-99: You'll receive yours starting Friday May 9th.

However, if you receive your annual tax refund by mail, you'll have to wait: Your rebate check will be mailed between May15th and July 11th (see schedule below).

The following information is courtesy the Detroit Free Press, which has listed the information very succinctly. Here’s how the checks will roll out:



If you do not use direct deposit to get your federal income tax refund – or you are paying taxes owed when you file that 2007 return – you’re going to get your tax rebate check later. The rollout times are more complicated, too.

If your last two digits of your Social Security number are 00-09, you could expect that rebate check to be mailed by May 16.

It’s by May 23 if the last two digits are 10-18.

It’s May 30 if the digits are 19-25.

It’s June 6 if the digits are 26-38.

It’s June 13 if the digits are 39-51.

It’s June 20 if the digits are 52-63.

It’s June 27 if the digits are 64-75.

It’s July 4 if the digits are 76-87.

It’s by July 11 if the digits are 88 -99 and the person did not use direct deposit of a refund this year – or if you wrote a check to cover money owed for the 2007 tax year.

[sophie]

Chapter 13 and the stimulus rebate

We're in a 13 and our '06 taxes are in our plan. However, we paid our 07 taxes. Does anyone have any insight as to whether or not we'll get a rebate? On the IRS page it says anyone who owe taxes won't get it. If the 06 taxes are in our plan, does that mean we owe taxes and won't get it?

Thanks!

[jenski]

we filed ch 13 on 3/31/2008.

our meeting of creditors is 5/21.

we should have our tax rebate in the bank by 5/9 (according to the new schedule that was released today 4/25). it will be gone by the 21st.

house repairs.

my trustee will not get it. i won't even mention it at the creditors meeting unless it is brought up by someone else.

[Stilltheone]

Yes, if the rebate can be exempted, then you will get to keep it. Regardless if the trustees decide to go after them.

The issue is really for those states (most states) that do not have a, or have a very small, general cash and/or wild card exemption and for all states there is the open issue of whether, in a chapter 13, the rebate will be considered disposable income (some chapter 13 trustees are NOT going after it, and some are).

I'm in Wisconsin...I have no clue what our cash exemption is for this state, but I'm glad that it looks like we'll be able to keep it!

[HHM]

Yes, if the rebate can be exempted, then you will get to keep it. Regardless if the trustees decide to go after them.

The issue is really for those states (most states) that do not have a, or have a very small, general cash and/or wild card exemption and for all states there is the open issue of whether, in a chapter 13, the rebate will be considered disposable income (some chapter 13 trustees are NOT going after it, and some are).