In March 2020, the CARES Act was signed into law. As part of this package, direct stimulus payments were made to households across the country. Each household could receive up to $1,200 per adult and $500 per child. If despite this assistance, you are still struggling to pay off your debts and are considering bankruptcy, you may be wondering if the checks you received are exempt. In Idaho, there are a variety of exemptions available and, in short, your check will most likely be safe.
Your Stimulus Check is Safe
It has yet to be tested in court, but recipients filing for bankruptcy can keep their stimulus checks safe from bankruptcy trustees and creditors. Under Idaho law, any benefits you receive under state, federal, or local public assistance legislation are considered exempt. Therefore, your stimulus check is likely to be exempt and you can hold onto it even while filing for bankruptcy.
The COVID-19 pandemic made life financially difficult for many of us and, as a result, some had to consider the prospect of filing for bankruptcy. Knowing your stimulus check will not be used to pay off creditors can give you some peace of mind.
Although generally, the first round of stimulus checks is shielded from debts, if you are delinquent on child support payments, your stimulus check may not be protected from those debts. However, Congress expanded protection for the second round of payments to make sure the money would also be protected against owed child support.
Discuss Your Bankruptcy Case with a Knowledgeable Legal Professional Today!
If you cannot pay off your debts and believe bankruptcy is the best path forward, you should not hesitate to contact Avery Law for the guidance you need. Our bankruptcy team will help you navigate every step of the process, so you can get started on improving your financial future. Backed by more than 65 years of combined experience and a history of successful results, our team has what it takes to get you through your bankruptcy case as smoothly as possible.
For the skilled legal help you need, reach out to our law office today at (208) 285-2085 to set up a free initial consultation with one of our attorneys to learn more about what we can do for you.