Could Your Stimulus Payment be at Risk?
The COVID-19 pandemic is putting a strain on the economy that is being felt by everyone. Businesses are closing, people are losing their jobs and the uncertainty is beginning to wear many people down. When the federal government announced a stimulus payment would be sent out, the promised help was very welcome. As details of the coronavirus stimulus came to light, however, the omission of protection from debt collectors was missing in the language. Can your stimulus payment be taken to cover your debts? How can you protect yourself?
Identifying the Problem
In an article featured on CNN.com, some senators have recognized the issue and are calling on officials at the Treasury Department to prevent debtors from garnishing stimulus payments. Some states are taking matters into their own hands, preventing debt collection from stimulus payments, but the Treasury Department has yet to issue guidance concerning this potential problem. The problem with this is that it directly affects those at most risk during the pandemic. These payments are designed to help pay bills and buy necessities until the economy can reopen for business.
Protect your Stimulus Payment
The most effective way to ensure you have access to your complete stimulus payment is to closely monitor the bank account it will be deposited into and withdraw as soon as you see the payment posted. The stimulus payment will be deposited into the same account listed on your IRS tax return. Either deposit the funds into an account that is inaccessible to your debtors, or simply hold on to the cash instead.
These are trying times for many of us. The uncertainty of the job market, the massive job losses and not knowing when the economy will reopen are impacting many around the country and around the world. You do not have to face trying times alone. Give us a call at (404) 685-8800, or fill out a contact form. Gingold & Gingold can help you navigate this difficult time and explain bankruptcy options to you.