Spring City, TN asked in Bankruptcy for Tennessee

Q: Does TN require that chapter 13 payments also be made from the $600 federal stimulus money received during unemployment?

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2 Lawyer Answers
Oliver L Cisowski
Oliver L Cisowski
Answered
  • Bankruptcy Lawyer
  • Johnson City, TN
  • Licensed in Tennessee

A: No, this money is explicitly excluded from the definition of income in the CARES Act. This means it does not need to be paid into your plan.

However, if you have recently become unemployed due to the coronavirus and are not making payments into your Chapter 13 plan, you may want to speak to your attorney about a plan modification. There is a new rule the CARES Act implemented that allows for modification of your Chapter 13 plan if the coronavirus has caused an inability to stick with the original terms of your plan.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: No. However, if you are not making your chapter 13 payments, you should consult your bankruptcy lawyer or the trustee regarding the payments.

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