Good news! In the Middle District of Florida Bankruptcy Court, it is possible to file bankruptcy without losing your stimulus payments. You can keep your stimulus money.
The March 11, 2021, American Rescue Plan Act of 2021 provides relief for qualified individuals to address the impact of COVID-19, including additional recovery rebates and expanded child tax credits. It supplements the Coronavirus Aid, Relief, and Economic Security Act of 2020.
The US Trustee for the Middle District of Florida recently issued guidance that addresses questions that may arise under the ARP regarding the treatment of recovery rebates and tax credits in bankruptcy cases filed by individual debtors.
According to the March 24, 2021 guidance, Chapter 7 and chapter 13 trustees are not to consider any of the child tax credits or recovery rebates in administering estates or as disposable income in a chapter 13 plan. Additionally, trustees will not consider recovery rebates or additional child tax credits under the ARP in making means test calculations.
There are certain rare exceptions though, so the best option is to seek advice from a legal professional. If you have been sent stimulus money, you can consult a bankruptcy attorney to be sure you do the right things with that money prior to filing bankruptcy. You can book a free case evaluation today.