Most Americans will receive a much-needed stimulus check based on their income, thanks to the passage of the CARES Act by Congress last week.
Single adults who have an adjusted gross income of $75,000 or less would get $1,200.00. Married couples with no children earning $150,000 or less would receive a total of $2,400. You will receive $500.00 for each child under 16 years old.
The purpose of the stimulus check is to help Americans stay afloat during this trying time. If you are in a chapter 7 bankruptcy, most debtors will retain these funds and not be required to be turn them over to their bankruptcy trustee.
If you haven’t filed chapter 7 yet and receive the stimulus check, the funds are most likely still yours to keep in your bankruptcy. Though you will want to discuss this further with your attorney prior to filing as there may be certain exceptions to this.
If you are in a confirmed chapter 13 bankruptcy and receive the stimulus check, these funds are yours to keep, you don’t have to turn over the money to the bankruptcy trustee. This is not like the annual tax refund requirement.
The most important thing to note, if you haven’t filed a bankruptcy yet and have judgments against you, the stimulus funds are most likely not protected from judgment creditors. Meaning prior to a bankruptcy these funds may be at risk of levy sitting in your bank account.
If your contemplating filing for bankruptcy, Pikunis law is now offering virtual consultations via video conferencing technology. Stay home and stay safe. Currently you are able to complete the entire bankruptcy process from the privacy and safety of your own home. Call (856) 282-5505 to learn more.