COVID Can I Keep My Stimulus Money in Bankruptcy

I got a call from Ryan and Oleva, yesterday asking if he could keep his stimulus money if he filed a bankruptcy. And the answer is yes, but that’s not what it’s for. I’m attorney Joe Jeppson, I’m a consumer bankruptcy specialist here in Kansas city helping people file bankruptcy in Missouri and Kansas, since 2006. It’s an interesting question because the government is saying that you shouldn’t lose your money in a bankruptcy, but it doesn’t say you can’t lose your money in a bankruptcy. There is direction from the U S trustee’s office that it is unlikely, but all the rules say that they can absolutely take that money if you haven’t received it as of the day that you file your bankruptcy, more of it’s in the bank. Missouri does have some exemptions to allow you to protect that exemptions are the laws that allow you to keep and protect property.

Kansas does not, so in Ryan’s case, the best plan might be to use that money and then file the bankruptcy that might, I wouldn’t recommend paying down debts because if you are calling about bankruptcy, $1,200 isn’t gonna fix your problem. Average person in Missouri and Kansas has around $5,500 worth of consumer debt, credit cards and things not including houses and cars and student loans. And if you’ve got multiple credit cards or medical bills or something that pushes you to 10 or 20 or more than that, thousands of dollars in debt, the best thing you could do with that money may be to use it to file a bankruptcy. If you owe $20,000 in debt, use your 1200 to wipe out 20,000. That’s a great multiplier and a great value. Now, bankruptcy is not right for everyone. So if you were having problems with credit cards or payday loans or medical bills, or you need help protect you to a house or car, give us a call today for a free consultation.

We’ll sit down and figure out the details of your unique situation. And once I know where you’re at and where you want to be, we can start putting together a plan of action for how to get you there frequently. That involves me, and if you do need my help, we’ll sit down and figure out an easy payment plan for fast help. And if that doesn’t involve me, at least you got good information. And a lot of our clients coming feeling frustrated and scared and even embarrassed about the debts that they just can’t afford to repay for one reason or another. And they find that having information and a good plan of action, that puts their mind at ease because they’re back in control and they can sleep at night again. So it gives me that call for a free consultation and we’ll help you on your way.