Boston Bankruptcy Attorney

Stimulus Checks and Bankruptcy

Any stimulus check received by an individual may or may not have an effect on bankruptcy. The effect depends on where in the bankruptcy process a person is and which chapter of bankruptcy they have entered into.

A person who is already in bankruptcy may have no effect on his or her status at all. A person who is planning on filing for bankruptcy is a different story. Any stimulus check can be counted as income and may push a person’s income over the last 6 months over the threshold for chapter 7 and force him or her to file for chapter 13. In addition, a stimulus check can be counted as a potential asset and should be listed on all paperwork.

For a person who is already in bankruptcy, the stimulus check has different effects. People in Chapter 7 may be required to turn all or part of a stimulus check over to the trustee handling their case. In some cases, a stimulus check may be considered exempt. If this is the case, then a person need not turn over his or her stimulus check.

Individuals who are in Chapter 13 may be able to use their stimulus check as part of a payment to the trustee. In these cases, it is a very good idea to consult the bankruptcy lawyer that handled the case as to what to do with the stimulus check.

Contact a Boston Bankruptcy Lawyer

If you are considering filing for bankruptcy but do not know which chapter is best for your individual circumstances, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346 today.