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Will I Receive My Stimulus Check If I Have Started Filing Bankruptcy?

The economic stimulus payment sent out to tax filers is meant to alleviate their financial distress because of the pandemic. However, some debtors find that their checks are vulnerable to actions taken by collection agencies and attorneys. You wonder if your check could be seized if you are in the process of filing for bankruptcy.

You do not want to deceive the court by saying that you did not receive a stimulus check. You also need to avoid withdrawing it and keeping it as cash to hide it from the court. You can find out how to protect your stimulus check by hiring an experienced Henrico bankruptcy law firm like Canfield Wells today.

Filing for a Wildcard Exemption


Your stimulus check will be counted as an asset in your bankruptcy estate. There is no law that exempts any money that you receive in your bank account or in paper form from being counted as an asset.

To protect the check, you may need to file for a wildcard exemption. This exemption asks the court to avoid seizing the check or forcing you to surrender it to the bankruptcy trustee. Your attorney can ask the court to allow you to use the money to support your family during the pandemic, which can be vital if you have experienced job loss or cut hours or wages because of Covid.

Trustee Exemption

The federal trustee program ruled recently that bankruptcy trustees should not seize stimulus checks as assets. Still, trustees in some states still have that option. If your trustee is asking for you to surrender the check, you can ask your lawyer to notify the trustee program and ask for its intervention in your case.

You can discuss the status of your stimulus check with a Henrico bankruptcy law firm before you file. You can call Canfield Wells for a consultation today.

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