341 is over! They took our Stimulus Money

[JRScott]

Welcome to the 60 day club

[wayovermyhead]

Question??

What does the Trustee do with the money? Where does he send it? Does he keep it... Literally?

BUMP... Anyone??

[Cali]

The children wouldn't get the money if the parents hadn't had them, so I can see how they would want the full amount.

I really don't see why everyone that has to turn theirs over have their knickers in a bunch over this, would you prefer to keep the debt and then be able to keep the stimulus.

Agreed. I have on multiple times called the trustee taking our stimulus check as our "penance" or our (snicker) "stupidity tax".

If he could at least let us keep the part that was supposed to be for the children it would have been nice. They shouldn't be punished for their parent's misfortune/stupidity.

But what is done is done. No sense fighting the system, you only die tired that way.

[newlawyergirl]

If you filed under federal exemptions, then you have the 'wildcard' exemption to exempt ANY property that is otherwise non-exempt, like cash in hand or equity in a car that is above the limit of the vehicle exemption, up to approx. $8,725 of your unused homestead exemption. You usually use this 'wildcard' bucket of exemptible assets to keep things not specifically covered under the federal exemptions: the balance in your checking account, the cash in your wallet, an expensive piece of jewelry, tax refunds AND the stimulus payment. I would think that if your stimulus payment was taken away from you that you either 1) filed under state exemptions and therefore your tax refunds, etc are non-exempt, or 2) forgot to list the stimulus payment on your exempt assets list.

If you filed under federal exemptions AND did not use your full homestead exemption AND did not use up your full wildcard (refer to it as the "d(5)" exemption), then perhaps you could ask your attorney if not too late to amend your schedules to exempt the stimulus payment. If you have not yet filed, be sure to specifically exempt the stimulus payment under a d(5) federal exemption on your schedules.

[poor@budgeting]

Trustee wants mine, he said to foward him the unsigned check. I recieved it via a direct deposit, how should I send it to him? In a money order or??????????

I would guess most Trustees only accept money order.

[poor@budgeting]

If you filed under federal exemptions, then you have the 'wildcard' exemption to exempt ANY property that is otherwise non-exempt, like cash in hand or equity in a car that is above the limit of the vehicle exemption, up to approx. $8,725 of your unused homestead exemption. You usually use this 'wildcard' bucket of exemptible assets to keep things not specifically covered under the federal exemptions: the balance in your checking account, the cash in your wallet, an expensive piece of jewelry, tax refunds AND the stimulus payment. I would think that if your stimulus payment was taken away from you that you either 1) filed under state exemptions and therefore your tax refunds, etc are non-exempt, or 2) forgot to list the stimulus payment on your exempt assets list.

If you filed under federal exemptions AND did not use your full homestead exemption AND did not use up your full wildcard (refer to it as the "d(5)" exemption), then perhaps you could ask your attorney if not too late to amend your schedules to exempt the stimulus payment. If you have not yet filed, be sure to specifically exempt the stimulus payment under a d(5) federal exemption on your schedules.

Good to know, thanks. Now to the stupid question, what's the easiest way of finding out via looking at the exemption schedule if federal exemption was used - short of asking my lawyer.

[JRScott]

BUMP... Anyone??

He distributes it to your creditors. He does take a small handling fee from the top I think, but most goes to your creditors.

[2muchstress]

mine got discharged in feb this yr. if i get stimulus, will i keep it?

[PaKettle]

The point - to me - is that the Trustee has no right to this Economic Stimulus package.
I think it should be illegal for the Trustee to take it because it is NOT the intended purpose of the stimulus payment. The purpose is to put the money into the hands of consumers, not creditors.

I really think it's illegal for the Trustees to take it, UNLESS it is written into the law that created the stimulus payments, which I have not heard that it is.

I really really think an attorney should take this all the way to the Supreme Court if necessary to get it ruled that Trustees cannot take this stimulus check.

By the way, I have no vested interest, I've already been discharged and am keeping mine. I just think it's wrong for the Trustees to take something they should have no right to take.

[TX Bluebonnet]

Trustee wants mine, he said to foward him the unsigned check. I recieved it via a direct deposit, how should I send it to him? In a money order or??????????

I'd send it to him in the form of a certified check. That way you'll have the bank transaction as proof.

[sisterfunkhaus]

I guess I get to be the one who dissents from everyone one else on this subject. First off it was something you got for nothing, it was a gift from all the tax payers. Second, your in BK and just discharged $153K in debt and 'had' to hand over $1800 you never had, never received and well never would have gotten if it wasn't for some idiot in office thinking we need to 'spend more' to help out the economy.

Without getting into the politics, I honestly would be more than happy to hand back my check and be free from all my debt if that all it took make the trustee happy. I mean in my opinion its a small price to pay to get the trustee off your back and sail through your BK.

No one said they weren't glad to be be getting debt discharged. The poster was just expressing feelings of frustration because the trustee is padding his rich pockets with money they could use to start their new lives with. There is nothing wrong with expressing frustration. It is healthy. Plus , the stimulus isn't meant to pad the trustee's pockets. It was meant to stimulate the economy by giving people extra money to spend on "stuff".

[sisterfunkhaus]

OK look at it from this point, would you rather have the trustee take a check you never really had or come to your house and verify everything you listed on your forms? Would you prefer to fight with the trustee over exemptions and values or just give them a check that you never really had.

i would rather them come to my house, look at my stuff, and give me the $$$. We were honest on our forms. We have nothing of value to the trustee. I am confident that if the trustee came to my house, that he/she would laugh at what little we have and leave. And if they left without my stimulus check, I would be a happy camper.

[sisterfunkhaus]

He distributes it to your creditors. He does take a small handling fee from the top I think, but most goes to your creditors.

Ah, I'd like to see him distribute $1500 minus his share to my 50 or so creditors who I owe over $200,000. That'll be a hoot for sure.

[Cali]

I don't believe the trustee is making that much to line his pockets.

And I doubt many people are going to actually stimulate the economy with the money, so it still won't be serving the purpose it was meant to serve.

No one said they weren't glad to be be getting debt discharged. The poster was just expressing feelings of frustration because the trustee is padding his rich pockets with money they could use to start their new lives with. There is nothing wrong with expressing frustration. It is healthy. Plus , the stimulus isn't meant to pad the trustee's pockets. It was meant to stimulate the economy by giving people extra money to spend on "stuff".

[PaKettle]

I don't believe the trustee is making that much to line his pockets.

And I doubt many people are going to actually stimulate the economy with the money, so it still won't be serving the purpose it was meant to serve.

So, bankruptcy experts:
How much DOES the Trustee get to keep out of this $1200 stimulus check if he takes it?

And actually I think MOST people WILL go out and buy "stuff" with their
$1200. By "most" I mean over 50%.

As to whether that really helps our economy, I doubt it. Seems to me it's just like buying stuff on credit. Eventually that money has to be paid back, somehow. One way or the other... an increase in taxes or ???