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U.S. Trustee Program Position on Stimulus Checks

The U.S. Trustee Program is part of the Department of Justice and is responsible for overseeing bankruptcy cases filed in the United States. Recently, the program has released a statement on its position surrounding stimulus checks issued as part of the government’s COVID-19 economic relief package. According to their statement, stimulus checks are not considered income or assets when calculating disposable monthly income or estate value for bankruptcy purposes. This means that any money received from stimulus payments will not be counted in either calculation and thus, have no effect on a person’s eligibility to file for bankruptcy or their final repayment plan. The U.S. Trustee Program also clarified that any stimulus payments received after someone has already filed for bankruptcy must be returned to the government if they wish to remain eligible for debt discharge through Chapter 7 or 13 Bankruptcy proceedings.

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