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  1. #1

    Default Bankruptcy and Stimulus Payments

    My question involves bankruptcy in the state of: OHIO: My understanding is these federal stimulus checks are exempt from bankruptcy. does this protect services paid for or assets purchased with said funds or the cash value only? would household appliances or a car bought in full with cash up to the amount of the stimulus then be susceptible to become part of the BK estate?

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Bankruptcy and Stimulus Payments

    My guess is that whatever you buy with the money would not be exempt from bankrupt except that the items or items might fall within the bankruptcy exemption limits.

    For example, Ohio exempts an automobile's equity up to $4000. So, if you bought a car for $1200, it would be exempt.

    If you bought a refrigerator for $1200 you might have a problem because Ohio exempts household goods for $625 per item up to a total value of $13,400. But, you can apply Ohio's wild card exemption of up to $1325 for personal property and keep the refrigerator.

    Consult a bankruptcy attorney as there are too many variables involved to warrant further discussion.

  3. #3
    Join Date
    Sep 2018
    Location
    Ohio
    Posts
    434

    Default Re: Bankruptcy and Stimulus Payments

    Quote Quoting Tennesseestud
    View Post
    My question involves bankruptcy in the state of: OHIO: My understanding is these federal stimulus checks are exempt from bankruptcy. does this protect services paid for or assets purchased with said funds or the cash value only? would household appliances or a car bought in full with cash up to the amount of the stimulus then be susceptible to become part of the BK estate?
    The Wild card also can be cash. You are permitted $500.00 in nontouchable cash as an exemption off the bat, add the WC and that would be, assuming the stimulus check is $1,200.00, total $1,700.00 cash. To my understanding, the WC does not have to be "property" as in such as you point out, a refrigerator, etc.

    Consult an Attorney, 1st visits/calls are usually free

  4. #4
    Join Date
    Oct 2014
    Posts
    8,238

    Default Re: Bankruptcy and Stimulus Payments

    Quote Quoting Tennesseestud
    View Post
    My question involves bankruptcy in the state of: OHIO: My understanding is these federal stimulus checks are exempt from bankruptcy. does this protect services paid for or assets purchased with said funds or the cash value only? would household appliances or a car bought in full with cash up to the amount of the stimulus then be susceptible to become part of the BK estate?
    There is nothing in the CARES act that provides for the stimulus payments that makes the stimulus payments exempt property in bankruptcy. But you might be able to use one of your normal bankruptcy exemptions to cover it.

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