Legal Question in Bankruptcy in Georgia

Re: bankruptcy and stimulus refund

Take a look at your Chapter 13 plan. In the northern district of Georgia, the standard plan usually speaks to the treatment of tax refunds.

Generally, if your plan provides for a high percentage payout to unsecured creditors, the trustee will not insist on a tax refund provision.

If the percentage is in the 50% range, then often the trustee will ask for tax refunds for 3 years. If you have a low percentage plan, the trustee might want tax refunds for the full term of the plan.

Since the stimulus refund is an unexpected development, you may be able to argue that it is not a "tax refund." If you have exemptions available to cover the payment, perhaps you can apply that.

I suspect that most bankruptcy judges have set out their positions on this matter - I would ask your lawyer to sniff around to find out what the judges are doing with this issue - it has no doubt been settled.

Re: bankruptcy and stimulus refund

Only your Chapter 13 lawyer will have the information to answer. Ask him.