The New Stimulus Payments Aren't Protected From Debt Collectors

[LiberalArkie]

03/15/2021 03:11 pm ET

Debt collectors can take away some of the $1,400 coronavirus relief payments Congress approved last week as part of the American Rescue Plan.

The $600 payments that Congress approved in December were protected from garnishment ― but the special rules that Democrats used to pass the latest bill did not allow them to include the protections this time, according to Sen. Ron Wyden (D-Ore.).

“While Democrats intend to protect the third payment from private debt collectors, Senate rules did not allow us to include that protection in the American Rescue Plan,” Wyden said in a statement.

Wyden, chairman of the Senate Finance Committee, said he would introduce a standalone bill this week to block garnishment. The Senate unanimously approved a similar bill last year, but Republicans had already voted in favor of the direct payments at the time. No Republicans supported the underlying Rescue Plan last week.

Snip

https://www.huffpost.com/entry/stimulus-checks-debt-collectors_n_604f9e2cc5b60ef5c939bf12

[kimbutgar]

1. My right wing sister in law told me that.

I wonder if it can go after past due child support and student loan late payments.

[questionseverything]

3. If there's a judgment against you connected to the account

N/t

[Hugh_Lebowski]

2. I wonder if mine would go to my past due taxes that I'm doing a payment plan for?

Interesting question.

Luckily in my case if they do, they do. I just won't have to pay back for nearly as long, which is nice.

For some people ... it probably would be kind of a big deal tho if they are counting on this $$$.

[intrepidity]

4. Wyden better move quickly if he intends to help nt

[nightthinker]

5. If you have unpaid debts and are worried about garnishment...

... hopefully, you can get a check in the mail and not direct deposit so you can go cash the check at Walmart for (hopefully) a small fee.