Has anyone lost their stimulas check yet?

[totallyconfused]

I think we will be safe. We still owe $1500 to the IRS and that is how much our check will be the rules for the stimulus state that for them to send it out you must be paid in full> Since we are not they will use ours to pay what we owe and the trustee can't take it. I didn't plan it this way but it seems to be working out.

[surferboy]

Well you got pretty lucky Totallyconfused. Imagine that lucky to owe the government...Never thought I would say that one.

[surferboy]

Hello Cali, have you already filed? I am in the same boat. I was not planning to file after my tax return either. I actually paid a creditor 1200 dollars and now they are going to be in the bk. If I only had a magic 8 ball. I could ask it all kind of great questions. haha.

Any ideas on things that I could maybe spend it on that the trustee wouldn't look down on? I was thinking of buying stuff that we needed but they couldn't resell to make any money off of. Like we really need insulation and gutters on the house. That would be some of it. Could I get away with buying stuff like bike racks for the car and things?

[2confused]

Do you have many utility bills or student loans? These are things that don't go away.

[lrprn]

The sad truth is that each state bk court (or courts) are making a decision about how they will treat the stimulus payments. If your state decides that the stimulus payments can be taken and your trustee takes yours because your state exemptions left over after filing can't protect it, the trustee doesn't keep it. He/she will change your case to an asset case and distribute it out to your creditors.

If your Ch 7 trustee does take your stimulus payment as a cash asset of your bankruptcy estate, then yes...it's a very frustrating thing. However, try thinking about it as a small price to pay to discharge many, many thousands of dollars in the end.

[epiphany]

However, try thinking about it as a small price to pay to discharge many, many thousands of dollars in the end.

Amen.

ep

[cleo1357]

Even in the same district, it appears that the trustees are handling it differently. I had my 341 yesterday, and my trustee made NO mention of the stimulus check. I have seen posts from several others in the same district (not the same city, though) saying that their trustee is taking the stimulus. I'm still hanging on to mine when I get it, just to make sure, but I see no news as good news.

[DivorceRuinedMe]

Lrprn - if your case is discharged, the trustee can't reopen from no asset to asset to take the stimulus checks, right? My case hasn't been closed so that's why I'm wondering. I am not getting my hopes up that I get to keep the check but I'd really like to know one way or another. The trustee hasn't sent me anything in the mail and my attorney hasn't said anything to me either. I just emailed her this AM asking for any new info also.

[justplaintired]

Interestingly enough, our attorney's paralegal just called me. She wanted to let us know they had received a memo from the US trustee informing them the stimulus check is fair game. In other words, she said that it appears in Indiana they will be taking the stimulus checks if we had already filed. So she thinks we should definitely hold off filing until we have spent the check and to be sure we keep all our receipts. She said it basically up to the trustee we get, but some are total a**s and we should be prepared if we file before we receive it to lose it. So, I am very thankful we hadn't already filed.

We intended to be filed by now, however another interesting little info she told me is right now she has a stack of 25 BK sitting on her desk she has not even started on. This figure does not include the ones they have already filed. Keep in mind this is a small midwest town with a population of maybe 20,000 and this attorney is by far not the only BK attorney, kind of tells you how much BK is going on. She said some of their clients are in a panic due to the stimulus and are in fear they will lose it, which is sounds like they will.

So if you haven't filed, best bet is to hold off a little longer until you have received it and done whatever necessity needing done, car repairs, home repairs...., if you have already filed, sounds like it basically up to your trustee and it sounds like the US trustee want them.

Good luck and let's hope they don't take yours!

[Stilltheone]

Our attorney listed our stimulus check as an exemption, so I'm pretty sure we're safe...

Still, I'm hoping we get it before our 341 so I can shoot a check off to my daughter's school for tuition.

[surferboy]

What can the Trustee do if I spend it before my 341 meeting? I mean I have not been told that I couldn't spend it?

lrprn you are right. I mean in reality I am being forgiven 30k (even though half of it is interest) so them taking the 1200 I can understand. But at the same time I really need it too.

[Cali]

Hi,

No, I haven't filed my BK yet. I was planning, even before the rebate, to file in the summer. I have paid all my fees to the attorney though, did that in March.

I would spend on things you need done, house repairs, car repairs, dental, groceries, clothes, etc.

I think the 1200$ will probably be taken back, since it is over the 600$ mark.

I am not sure about bike racks.

Good Luck!

Hello Cali, have you already filed? I am in the same boat. I was not planning to file after my tax return either. I actually paid a creditor 1200 dollars and now they are going to be in the bk. If I only had a magic 8 ball. I could ask it all kind of great questions. haha.

Any ideas on things that I could maybe spend it on that the trustee wouldn't look down on? I was thinking of buying stuff that we needed but they couldn't resell to make any money off of. Like we really need insulation and gutters on the house. That would be some of it. Could I get away with buying stuff like bike racks for the car and things?

[Cali]

I know BK filings have gone up a lot in San Diego, and I don't see it slowing down anytime soon.

We intended to be filed by now, however another interesting little info she told me is right now she has a stack of 25 BK sitting on her desk she has not even started on. This figure does not include the ones they have already filed. Keep in mind this is a small midwest town with a population of maybe 20,000 and this attorney is by far not the only BK attorney, kind of tells you how much BK is going on. She said some of their clients are in a panic due to the stimulus and are in fear they will lose it, which is sounds like they will.

[surferboy]

Hehe thanks Cali. That is probably what I am going to do.

I called 4 local lawyers and two of them said that the trustee's have not made any kind of statements saying if they were going to take them or not. The other two said that they wouldn't. I think that I am going to give it some time and maybe sit in on some 341 meetings at the courthouse to see if it comes up and what happens. That is probably my best bet.

[justplaintired]

Hehe thanks Cali. That is probably what I am going to do.

I called 4 local lawyers and two of them said that the trustee's have not made any kind of statements saying if they were going to take them or not. The other two said that they wouldn't. I think that I am going to give it some time and maybe sit in on some 341 meetings at the courthouse to see if it comes up and what happens. That is probably my best bet.

Good idea, better safe then sorry I think. Don't bring it up see if they do. Maybe you can exempt it somehow. Good luck, I personally think we all deserve to keep them anyway. Better us to stimulate the economy then a creditor or a trustee!