Bill collectors and banks can seize your stimulus money to pay for outstanding debts. Filing bankruptcy can protect your stimulus money, your home, and other important assets during these difficult times. COVID-19 has already placed some extraordinary financial hardships on people. Job loss and unemployment have reached record numbers in Wisconsin. Therefore, protecting your stimulus money is going to have an even greater significance. It’s up to you to decide how to get out of debt, and how to spend or invest your stimulus money.
Job Loss & Unemployment
Due to COVID-19, many Wisconsin businesses shut down or severely limited their services. Many workers were either laid off or let go. After the stay at home order was lifted for non-essential businesses on May 11th Southeastern Wisconsin saw a slight uptick in consumer confidence. Yet by the end of May, unemployment claims continued to peak in Southeastern Wisconsin, most notably in the counties of Milwaukee, Sheboygan & Kenosha. The Department of Workforce Development reported on May 21st that Wisconsin continued to lose private-sector jobs resulting in the unemployment rate jump of 3.1% to 14.1%.
Anyone who has fallen behind on paying bills should be aware that private debt collectors can come for your stimulus money. Many folks are surprised to hear that the money could be seized for the payment of unpaid debt such as credit cards or medical bills. Protect your stimulus money! It can be done when your file bankruptcy chapter 7 or chapter 13. Why? Because stimulus money is almost always exempt from being counted as income when you file bankruptcy. Therefore, by filing bankruptcy, you can stop the creditors from calling, get out of debt, AND protect your stimulus check.
Curious what else may be exempt in bankruptcy? Learn about Wisconsin bankruptcy exemptions.
In response to the devastating impact of COVID-19, the U.S. government provided monetary relief to both individuals and businesses. According to May 28th reports from the U.S. Treasury Department and IRS; 2,817,912 total checks are expected to reach Wisconsin residents, totaling $4,948,382,340. The disbursements of $1,200 per adult and $500 per child are finishing up in June, 2020. However, there may be a second round of stimulus money approved. Protect the money and assets that are most important to you and your family.
Learn more about filing bankruptcy. Request your free virtual consultation with a bankruptcy attorney from Debt Advisors.