Last week, Congress approved a third round of stimulus payments as part of the American Rescue Plan. Payments of up to $1,400 began being distributed this past weekend. The second round of stimulus payments that went out in December were under protection from garnishment by debt collectors. Unfortunately, that is not the case with the current payments.
For people with unpaid credit card debts or medical bills, your stimulus payment may be subject to wage garnishment. Lawmakers are scrambling to fix this, but for now, you can learn more by reading the following articles:
- Stimulus Payments: Debt Collectors Can Seize the New Stimulus Checks, CNN
- The New Stimulus Payments Aren’t Protected From Debt Collectors, HuffPost
If you are affected by this oversight, please contact Flexer Law and we can discuss your options.