Stimulus Check Bill Collectors

The second stimulus payment doesn t come with the same rules as the first.

Stimulus check bill collectors. But they can garnish your bank account if they have a judgment against you or seek a judgment to do so. However it did not prevent private debt collectors from garnishing the payments. Unfortunately it was with the previous stimulus bill the cares act that taxpayers and politicians became aware that this was a possibility as many reported having their money seized by bill collectors.

Because of the way that lawmakers set up the stimulus check program what those debt collectors are doing appears to be legal but it also threatens to undermine the entire point of the program. Debt collectors seizing stimulus checks 06 19 the u s. The problem legal advocates say is that the stimulus checks aren t explicitly off limits to debt collectors or creditors unlike other government payments such as social security and.

Unlike some government payments such as social security and disability benefits your stimulus check is not shielded from all debt collectors. According to the hill the bill had overwhelming bipartisan support and will protect citizens from having their next coronavirus relief payments garnished. They can t do so directly creditors aren t going to contact the irs and have your money diverted to pay off what you owe.

Treasury is sending out 80 million stimulus checks this week the first part of its effort to put cash into americans hands to ride out the. This may come as a shock but private debt collectors can seize your stimulus check. That 1 200 stimulus check may be gone faster.

Here s what you need to know. Debt collectors might also be able to seize your stimulus check. The senate has unanimously passed a new bill prohibiting banks and debt collectors from being able to seize the second stimulus checks.

The payment is lower at 600 per eligible person and the income limits to qualify are stricter this time.