Stimulus check Chapter 13?

[Carmella]

I am not going to worry about. Best case we get extra money to pay some bills/taxes. If the trustee wants to keep it then it will cut about a month off our 60 when I look at it in those terms maybe the the trustee won't think it's enough money to worry about LOL.

[sophieanne]

Carmella - i'm hoping for the best case scenario for everyone here that's in a 13!!! This is to help with the many unexpected expenses people are facing and I think it would be terrible if the money got taken away. I guess we'll all learn soon.

[lostinnola]

So do we expect that each Trustee will just send out a blanket statement about them or how will it work if they do want the money?

[sophieanne]

lostinnola - I think it's a wait and see for everyone. I think there's lots of details to be worked out by a number of different entities who will be effected by this bill.

[justbroke]

I don't know what the individual Chapter 13 Standing Trustees will do. It would be nice if they each issued a letter to each debtor to let them know that they can keep the stimulus!

[flashoflight]

As long as your trustee as a rule lets you keep some amount of a tax refund above zero for a <100% plan, I think it's very unlikely they will try to go after it. I would not consider the stimulus check to be low hanging fruit because of the bankruptcy language inserted into the act.

[mel22nv]

I'm in FL Middle District BK Court, not sure what will happen I'm taking the IRS extension because I owe this year and not in a hurry to file. I hope to use the $1200 to help with paying my tax bill. Can I file my taxes electronically or do I have to file via paper if I'm in Chapter 13? Again I owe this year so waiting to file during the 2 month extension. Of course I know my trustee could take it so if that happens I get it. I read the information about extending Chap 13 for 7 years, I already think 5 years is hell but I do understand it would help a lot of folks. My thoughts about the stimulus check is it's a one time $1200 meanwhile other countries are paying folks a monthly amount. How will this even help some folks? Its not enough and this thing is nowhere near over!

[justbroke]

I'm in FL Middle District BK Court, not sure what will happen I'm taking the IRS extension because I owe this year and not in a hurry to file. I hope to use the $1200 to help with paying my tax bill. Can I file my taxes electronically or do I have to file via paper if I'm in Chapter 13? Again I owe this year so waiting to file during the 2 month extension. Of course I know my trustee could take it so if that happens I get it. I read the information about extending Chap 13 for 7 years, I already think 5 years is hell but I do understand it would help a lot of folks.

A Chapter 13 debtor can extend the Chapter 13 Plan for a period that would make the overall Chapter 13 plan duration 7 years. So a 3 or 5-year plan could be modified to a 7-year plan.

My thoughts about the stimulus check is it's a one time $1200 meanwhile other countries are paying folks a monthly amount. How will this even help some folks? Its not enough and this thing is nowhere near over!

The U.S. is actually doing both as well. Here's what the U.S. bill contains (and is much richer than the other countries);

• The U.S. Congress authorized payments via State unemployment agencies to provide an additional $600/week ($2,580/month) in UI benefits.
• The extended UI benefits last for 16 weeks but can be extended another 13 weeks.
• For some States, this can be significant (e.g. Colorado max unemployment is $618/week so adding the $600/week from the feds give you $1,218/week).
• The U.S. Congress extended the UI benefits to people not traditionally allowed to make an unemployment claim. For example "gig" economy works and other self-employed workers.
• The other countries are doing this similarly through their employment guarantee / unemployment insurance for non-workers.
• Compare that to Canada giving $2,000 CAD for unemployed people per month. That comes out to $1,400 US dollars per month. The U.S. unemployment figure is $2,580/month or nearly double what Canada is doing.
• From what I read last, the U.K. is actually different as they are doing "up to" 80% of the person's normal salary/pay. That is up to $2,900/month in US dollars.
• To compare to the U.S. unemployment amount, you have to take the normal unemployment insurance you would have received, say $618 in Colorado, and then add the Federal amount of $600/week to reach $1,218/week. For Colorado, that means you could get $5,237 a month under the UI benefits (when maxed out). (They tell me that there are a couple of other States that have even a higher max, and the Treasury Secretary mentioned that those maxed-out payments are equivalent to a $75K/year job.)
• The U.S. UI amount is not capped at any percentage of salary. You could actually get much more than 100% of your normal pay especially if you're part-time and earn less than $15/hour.
• The U.S. Federal unemployment contribution of $600/week is equivalent to a $15/hr full-time (40-hour) job, per week.

To summarize, the U.S. is using the unemployment systems of the States in order to funnel money to affected workers. The Federal government is, on top of any regular unemployment benefits, providing pay equal to a $15/hr full-time job per week for 16 weeks (with an extension available for another 13-weeks as necessary).

I can see why Congress was concerned and here's why they decided to just give everyone on UI an additional $600/week pay. Many of the UI systems belong to the States are just old. They actually don't know how to fix many of them to just "add" an additional fixed $600/week. Some more advanced and modern UI systems will allow for adjustments including a setting a maximum of what you normally earned. Since most of these State UI systems can't do that, the Feds decided to just give anyone that is to receive UI from any State, an additional $600/week (on top of normal State UI insurance).

Please note, that this information is based on what's in the bill and based on what transpired to make those things happen. The biggest problem is how to get the State UI systems to be able to make checks for normal UI plus the additional $600/week.

[sophieanne]

mel22nv - while in bk 13 you can file your taxes electronically. Good luck going forward.

[mel22nv]

justbroke thanks for all the information. Glad to know the US is doing more than other countries. None of it affects me the only thing I would possibly be able to do is extend my Chap 13 but I'm trying to be done in 5 years verses the 7 years they are allowing Chap 13 folks to extend too. I'll be done in August 2022 and even though it's a while away I'll just be happy to be over and done. sophieanne Thanks for letting me know I can file electronically. The past few years I had a CPA but decided that was a waste of money and was able to do it myself this year. I'll be filing on July 1st and hope to be able to pay it all at once but if not I'll pay half and the rest via online. I have back taxes in my Chapter 13 plan and while I know I could modify my plan and add this amount that's due I would rather not have to file another modification to my plan each time it cost me $500.

Hope everyone continue to stay safe and if you're like me I'm just trying not to let the news cycle consume my every moment.

[mikejayc]

FYI - your attorney would probably know the trustee's intention at this point so a quick call may give you an answer.

I just spoke with mine to find out how many more months we have (we're 8 months in and 44 months to go) and he said that the Trustee will not be asking for any of our stimulus. We are also in a 100% repayment plan and also get to keep any tax refunds. If your situation and/or trustee is different then you'd want to check.

Hope that everyone is doing well and gets some good news

[lostinnola]

I checked with my attorney and he said the way the law was written that they do not know yet if people already in chapter 13 will get to keep them. He said hopefully they will know by the time the checks arrive.

[Carmella]

For my own piece of mind. I decided if we get to keep the stimulus I need to put some aside for my husband to get new glasses. He has very bad eyes and even with our insurance it still costs a lot out of pocket close to $500. He needs the bells and whistles like non glare, thinner lighter plastic, etc. The glasses are essential for him and he's wearing an older pair since the newer pair (which is also old) broke the other day. The bulk of it will go to the IRS and our local taxes since we owe still some for last year IRS and we owe state, local and IRS for 2019.

If we don't get it we will just be a little closer to the end of Chapter 13 and still in the same situation we are now financially since we haven't lost our jobs. My husband has had a little overtime and extra $2/hour, but my second "as needed" job fizzled out for the time being (health care it could be low census or not wanting someone who works elsewhere to enter that facility as well). My husband's increased pay while welcomed will be less than the amount I could make on the second job.

[womanonfire]

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.

I actually love this post! Stand up!

[sophieanne]

For my own piece of mind. I decided if we get to keep the stimulus I need to put some aside for my husband to get new glasses. He has very bad eyes and even with our insurance it still costs a lot out of pocket close to $500. He needs the bells and whistles like non glare, thinner lighter plastic, etc. The glasses are essential for him and he's wearing an older pair since the newer pair (which is also old) broke the other day. The bulk of it will go to the IRS and our local taxes since we owe still some for last year IRS and we owe state, local and IRS for 2019.

If we don't get it we will just be a little closer to the end of Chapter 13 and still in the same situation we are now financially since we haven't lost our jobs. My husband has had a little overtime and extra $2/hour, but my second "as needed" job fizzled out for the time being (health care it could be low census or not wanting someone who works elsewhere to enter that facility as well). My husband's increased pay while welcomed will be less than the amount I could make on the second job.

Hi Carmella - look online at Warby Parker for glasses. Their prices are less than others and all glasses include some of the bells and whistles you described.