Murray, KY asked in Bankruptcy for Kentucky

Q: I'm in a Chapter 13 in Western Dist of KY. Confirmed in 2017. Will I have to turn stimulus check over to trustee?

The CARES act seems to be very clear that the Stimulus money cannot be used as "income" when FILING bankruptcy or when CONFIRMING the chapter 13 plan. The language isn't quite as clear for people currently in a confirmed Chapter 13 plan. Will I be able to keep the stimulus money or will the trustee want it turned over? Specifically Chapter 13 Trustee William Lawrence in Louisville, has he made any statement either way?

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3 Lawyer Answers
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY
  • Licensed in Kentucky

A: No. You should be able to keep your stimulus check if you otherwise qualify.

David Luther Woodward and Nick Curtis Thompson agree with this answer

1 user found this answer helpful

David Luther Woodward
David Luther Woodward
Answered
  • Bankruptcy Lawyer
  • Pensacola, FL

A: The consensus amongst most of the lawyers who have responded here is that it is not income, and accordingly is "exempt" from the clutches of the trustee.

Good Luck

d

Nick Curtis Thompson agrees with this answer

1 user found this answer helpful

Nick Curtis Thompson
Nick Curtis Thompson
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Louisville, KY
  • Licensed in Kentucky

A: The debtor has a duty to use his best efforts to repay. However everything we have heard indicates that you will not have to turn this over.

1 user found this answer helpful

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