Can your stimulus check be withdrawn by debt collectors?


CHARLOTTE, North Carolina (WBTV) – Millions of Americans will soon receive their $ 1,400 stimulus check.

Last week the US bailout was passed, which includes out-of-pocket payments for most people. They will go to people earning up to $ 75,000 per year or to married couples earning up to $ 150,000.

A viewer, who wants to remain anonymous, asked this:

Can the bill collectors take our stimulus check this time around?

The answer is yes.

Your check can be cashed if you have unpaid debts.

However, this only applies to certain types of debt.

There are three main types:

  • IRS tax debt.
  • Other public debt – so things like child support or private debt.
  • Things like credit card debt or medical bills … and in some cases, private student loans.

These checks are not protected against private debts. Thus, a private collector could garnish it.

Why is this happening? It’s because of the way this COVID relief package has been passed.

Everything was cleared through a process called budget reconciliation.

As part of this process, a finance bill only needs a simple majority to pass … instead of the usual 60 votes required.

Consumer groups and banking groups are calling on Congress to pass a bill that would prevent this.

Senator Ron Wyden is expected to introduce a bill, but he has not yet done so.

If you have a good question, send it to us. We will try to give you an answer.

Use the hashtag #OYSTonight on Twitter or send an email to [email protected]

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