Month: March 2021

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Stimulus Payments and Bankruptcy

With three rounds so far of stimulus payments, many clients are asking if these payments are subject to being taken by the Chapter 13 or Chapter 7 case trustees. The first two rounds were specifically protected. However, the third round was provided under a reconciliation act, so it was much more up in the air. Just recently the United States Trustee issued guidance to the local Chapter 13 and Chapter 7 trustees that they should not try to take the third stimulus payment, or the child tax credit. But if a local trustee thinks that such action is necessary, they can contact the United States Trustee for further guidance.

Be sure to contact your attorney with any questions.

Do you need an attorney to help you with bankruptcy? We would be happy to help. You can reach us at www.tennesseefirm.com, 731-424-3315, or any of our other contact methods.

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Making your Chapter 13 Plan Payments

In the Western District of Tennessee, there are currently only two ways to make your Chapter 13 Plan Payments.

First, you can easily pay online at http://www.tfsbillpay.com. You will need your case number and other information from your paperwork to set up your payment. You can set up single payments or automatically recurring drafts. You can select your payment dates as well.

Second, you can mail a money order to the Chapter 13 Trustee. Make the money order out to Chapter 13 Trustee. Include your name (where you can read it), your case number, and only the last four digits of your social security number. Mail it to:

Chapter 13 Trustee

PO Box 6003

Memphis, TN 38101-6003

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Covid 19 related Bankruptcy Law Changes

President Biden recently signed an act that was very helpful to bankruptcy clients. Essentially, if your case was confirmed prior to March 27, 2021, you are able to extend your Chapter 13 plan to up to seven years total. So if you started with a five year plan, as most people do, you can now add up to two more years to that plan to make it more affordable. If you started with three or four years, you can usually extend up to five years anyway, but this new act would allow those cases to also go up to seven total years, provided they were confirmed prior to March 27, 2021.

Does your case qualify for this extension? Contact your attorney to find out.