FAMILY LAW DAILY NEWS

Debt collectors can garnish your $1,400 stimulus verify

ST. PETERSBURG, Fla. – With the first batch of $ 1,400 stimulus payments in Americans’ bank accounts this weekend, some may soon learn that their check is going to a debt collector instead.

The $ 1.9 trillion COVID-19 bill known as the American Rescue Plan has undergone a process known as budget reconciliation – not like a typical bill that makes stimulus payments vulnerable to collection agencies, the reports Fortune Magazine.

The Yahoo! Stimulus Checks last spring, valued at $ 1,200, were according to Yahoo! News. The most recent $ 600 payments were protected.

The American Bankers Association wrote a letter to the leaders of Congress last week urging lawmakers to fill the loophole, Fortune reported for the first time.

“It is easy to code the payments as exempt, and we believe it is imperative for Congress to ensure that these next stimulus payments are treated as ‘benefits’ provided the federal government is exempt from attachment,” the letter said in part . “Otherwise, the families most in need of this money – those struggling with debt and whose entire bank account may be frozen by garnishment orders – will not be able to access their money.”

Individuals earning $ 75,000 or less per year are eligible for the full payment of $ 1,400. Couples earning $ 150,000 or less will receive a check for $ 2,800 with $ 1,400 for each dependent child.

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