How Does Bankruptcy Impact Your 2021 COVID-19 Relief Stimulus Check?

Filing for bankruptcy raises many questions, which is why plenty of people considering bankruptcy seek the support of a recognized Katy, TX consumer advocate, debt collection defense, and bankruptcy attorney. Whether you’re thinking about filing or have already done so, you must prepare for its impact on your life. Many people ask us at the Ciment Law Firm, PLLC, how a bankruptcy petition impacts their stimulus checks.

Will I Lose My Stimulus Check in Bankruptcy?

You might have received one, two, or all three stimulus checks designed to help American families during the difficulties of COVID-19, in the amounts of $1200, $600, and $1400. There’s no doubt that if you’re struggling with financial issues to the point of filing bankruptcy, you’ll accept every lifeline you can get. However, you might also be curious about whether or not you’re entitled to keep those checks.

For the most part, you do not have to worry about turning over these funds to the bankruptcy trustee in your case. Why? The U.S. Trustee Program has already shared a notice that they do not anticipate Chapter 7 or Chapter 13 trustees to recover stimulus money from any person who has filed. Furthermore, the CARES Act prevents trustees from including stimulus amounts in a monthly income and disposable income analysis. Since the CARES Act also authorizes the federal stimulus payments, most filers will be able to keep and use their funds at their discretion.

However, gray areas exist, especially since the CARES Act does not detail whether or not stimulus funds are considered separate from “property of the estate.”

What Happens if the U.S. Government Issues Another Stimulus Check?

As of right now, trustees have not been claiming stimulus funds as part of an estate, but that does not mean it will stay this way forever. One of the smartest things you can do is to retain an experienced consumer protection, debt defense, and bankruptcy attorney in Katy, Texas, so that you know what to do if the government approves another stimulus check. A knowledgeable legal team will help ensure that you handle it properly.

How Can I Use My Stimulus Check to Help Me Gain My Financial Footing?

Numerous expenses might have built up as you began the preparation and process of filing for bankruptcy. Your stimulus check could even help you with bankruptcy filing and attorney fees. In that sense, it can help you obtain a fresh financial start.

Here’s How A Texas Consumer Protection, Debt Collection Defense, and Bankruptcy Attorney Can Help

When you have questions about whether bankruptcy is right for you, if you’ve recently received a notification of a debt lawsuit filed against you, or debt collectors like Portfolio Recovery Associates are already contacting you, time is of the essence. Do not hesitate to get the support you need from a trusted debt collection defense, consumer protection, and bankruptcy attorney in Texas.

You should not have to go through the process of bankruptcy alone, especially when you’re not sure which form of bankruptcy is suitable for you or the potential impact it could have on your assets or credit rating.

When you sit down with your consumer protection, debt defense, and bankruptcy attorney, you’ll learn more about Texas bankruptcy exemptions and federal bankruptcy exemptions that apply at large; however, you will also learn more about the specifics of your case. These details can be beneficial as you move through the process.
From answering questions about filing for bankruptcy to assisting you with your paperwork for your petition, Ciment Law Firm, PLLC, a Texas Consumer Protection Firm, can guide you through your bankruptcy case. Since the details matter in allowing you to use this program to eliminate debts and restart your life, make sure you have the right consumer protection, debt defense, and bankruptcy attorney at your side for the duration.

Why You Need Texas Consumer Protection Law Firm Ciment Law Firm, PLLC

Firm founder Daniel Ciment is a recognized Texas consumer advocate and attorney with more than 15 years of experience in debt collection defense, consumer protection, and bankruptcy.

The experienced attorneys and legal team at Ciment Law Firm, PLLC, a Katy, Texas Consumer Protection Firm, know the common tactics used by debt collectors like Portfolio Recovery Associates, how to respond to creditor harassment, and the most appropriate ways to respond to a communication from a collector.

It’s why our firm has created a 3-step process with you and a fresh financial start in mind. It begins with resolving your debts, then protecting your rights and rebuilding your credit. As a debtor right now, you might feel overwhelmed and as though there is no way out. Turn to the support of our experienced consumer protection, debt collection defense, and bankruptcy attorneys to get your questions answered. Contact us to schedule your free consultation by filling out our online form or calling us at (281) 937-3949.

Copyright ©, 2021, Ciment Law Firm PLLC. All Rights Reserved.

Disclaimer: The information in this document is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.


Ciment Law Firm, PLLC
221 Bella Katy Dr.,
Katy, TX 77494


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