Debt collectors can confiscate your $ 1,400 stimulus check so you can keep your money
AMERICANS owing money may see their stimulus payments seized by debt collection agencies due to the legislature’s failure to protect the third round of stimulus payments from garnishments.
Any private debt collector convicted against you can seize your $ 1,400 stimulus payments, financial experts say.
The latest $ 1.9 trillion stimulus package, signed last Thursday, did not protect the final round of stimulus checks from garnishment, which means that many financial experts are advising money-owed Americans to withdraw those funds quickly .
“If you think you are at risk of attachment, you should monitor your account and withdraw the money immediately,” said Lauren Saunders, assistant director of the National Consumer Law Center Yahoo money.
“It would be terrible if the money Congress authorized to feed families and look after people in trouble were confiscated by debt collectors to pay off old debts.”
“That is why we are not performing this extraordinary relief.”
About 158.5 million households in the country are expected to see an economic check on their bank accounts or PO boxes.
However, the legislature is working around the clock to prevent the garnishment of the third round of stimulus payments. The first was not protected from seizure either, the second was.
Debt collectors can also seize payments on past due student loan debts, but the IRS was unable to seize payments for post-tax or child benefit nets.
Attachment varies from state to state, with some states offering protection to their residents from debt collection agencies.
Usually, a collection agency delivers the garnishment order to the bank, which causes the bank to freeze the account and notify the consumer.
The consumer then has to go to court to contest the order or claim an exemption. Unless the court overturns the order, the bank will hand over money to the collector.