Can the bankruptcy courts or trustee withhold my rebate tax stumulus check?


Momof2 asked:

I am filing bankruptcy on June 1, 2008 and am expected to receive my rebate stimulus check in July. Can the bankruptcy courts take my check to pay my creditors?  I was confused over this and would like some one to explain this to me.

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6 Responses to Can the bankruptcy courts or trustee withhold my rebate tax stumulus check?
  1. Mike Harmon
    August 4, 2008 | 4:37 pm


    Nice site. There?s some good information on here. I?ll be checking back regularly.

  2. Matthew Savage
    August 5, 2008 | 2:37 pm


    If you are already in a bankruptcy, the tax rebate may have no affect on you at all. If you are planning to file a bankruptcy in the next few weeks, before you receive your rebate, the tax rebate is a potential asset that should be listed on your bankruptcy paperwork. If you are filing a Chapter 7 case, you may be required to turn all or part of the rebate over to your Chapter 7 trustee, unless it can be claimed as exempt under the laws applicable in your jurisdiction. In a Chapter 13, it may be a small part of calculating your payment to the trustee. Consult with your attorney about what to do with the tax rebate when you receive it.

  3. Maryn Bittner
    August 6, 2008 | 6:54 pm


    I believe they can.

  4. Kenny
    August 7, 2008 | 7:04 am


    they can’t take your check but they can put a lien on your checking account. If you have direct deposit say bye to your stimulus. Cash it at a different bank or currency exchange…

  5. mommy
    August 9, 2008 | 4:49 pm


    Okay I don’t beleive they will take your money, I filed Bankruptcy years ago and they never took my tax money, but things have changed better contact your lawyer on this one

  6. jairi
    August 12, 2008 | 6:19 pm


    Yes, they can. I am surprised your trustee has not told you to bring it directly to him as soon as you get it.

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