Upcoming stimulus payments and chapter 7

[lookingforward]

So now I am worrying about any stimulus payments that might be coming. This is the new Louisiana statute.

"§3881. General exemptions from seizure

A. The following income or property of a debtor is exempt from seizure under any writ, mandate, or process whatsoever, except as otherwise herein provided:
....(10) Any consumer stimulus payments directly received by the debtor pursuant to federal law enacted to provide for COVID-19 relief, except for seizure of spousal or child support payments. This Paragraph shall not apply to payments received by the debtor as unemployment compensation."

So am I interpreting this correctly when I think that the trustee won't be taking any stimulus money?

I'm sorry y'all, I'm an overthinker and an overworrier.

Edited to add: We are post 341 and pre discharge.

[flashoflight]

I've not heard of a single trustee anywhere in the US attempt to seize the previous stimulus payments.

[justbroke]

As flashoflight mentions, we haven't seen any trustee that bold to try this during these troubling times.

For you, lookingforward it wouldn't apply because you are in a Chapter 7 and this would be paid "post-petition" -- not property of the estate. For Chapter 13 debtors, it could have been an issue. It's pretty cool that Louisiana added a bankruptcy exemption specifically for disaster payments, but it may not protect those in Chapter 13. There has only been one Chapter 13 Trustee to go after stimulus checks as part of the previous American Recovery Act back in 2009. The judge opined that they "could" but who would dare to do it under these conditions.

[bcohen]

I would be absolutely floored to hear of a Chapter 7 panel trustee demanding that a debtor turn over the proceeds of their stimulus check. Not only would that defeat the purpose of Congress providing such relief funds, but it would provide such little benefit to the creditors as well. I am actually surprised that Congress did not specifically exempt the pandemic relief funds in the context of bankruptcy, as it is not a stretch to think that most people who actually need the stimulus money will probably need to declare bankruptcy in the not-too-distant future.

[justbroke]

I would be absolutely floored to hear of a Chapter 7 panel trustee demanding that a debtor turn over the proceeds of their stimulus check.

For a Chapter 7, it's protected by the law. It's not income and explicitly excluded from process -- the Chapter 7 Trustee -- when in a Chapter 7 bankruptcy. Chapter 13s are special.