IMPORTANT UPDATE on Dealing with $1200 Stimulus Check During Bankruptcy
Dear Upsolve User,
We're contacting you due to recent changes from Congress, which passed the America CARES Act on Friday, March 27th. As a friendly reminder, none of this email is legal advice and should not be construed as such. Upsolve is not your lawyer. You are filing for bankruptcy on your own.
If you earned under $75,000 in 2018 and are single, you are likely entitled to a $1,200 stimulus check, plus an additional $500 for each child. The same rule applies for married couples who earn under $150,000. If you've already filed your 2019 tax returns, you should go by your income in 2019. People on social security are also generally eligible.
Upsolve users who expect to receive this stimulus check, may choose a couple of options to make sure their forms accurately reflect their financial situation. This is not intended to be an exhaustive list.
Option 1: Wait to file for bankruptcy until after you receive your stimulus check. You can file your forms after the filing date you chose with Upsolve. We don't need to know if you plan on filing after your filing date. Remember to update your forms using the case editor if there were any changes in income or expenses before filing. You do not need to email us to change your forms if you use this option.
Option 2: Update your forms to indicate that you expect to receive a stimulus check and file as soon as possible before receiving the check. Although, the stimulus check is not considered income, it is an asset. You must list all the money someone owes you on Question 30 of Schedule A/B. Listing this asset on Schedule C and applying the set of exemptions that you have already chosen may allow you to protect it. If you would like to file before you receive your stimulus check, please email email@example.com immediately with the following two pieces of information:
(a) How much you expect to receive? Most people who do not have children will receive $1200. Most people who have children will receive $1200+($500 x # of children they have.)
(b) Are you okay to proceed with filing even if there is no exemption available to protect your stimulus check? Two possible answers: Yes or No. If you answer "No," we will let you know if our software determines that your stimulus check may not be protected and may be taken by the trustee. You'll still be able to file your case either way.
Please email us if you have any questions. We're here for you in these challenging times.