Debt Collectors Cannot Seize New Stimulus Checks.

The Senate’s newly detailed COVID-19 relief legislation, the HEALS Act, including its proposed second round of stimulus checks will be unable to be seized by debt collectors.

If the HEALS Act becomes law, individuals earning less than $75,000 per year and couples earning less than $150,000 per year will receive a $1,200 check or a $2,400 check, respectively. This legislation would grant adults an extra $500 per dependent regardless of their age.

HEALS Act stimulus checks would be exempt from seizures resulting from state, federal, or even private debt with the exception of past-due child support. Those set to receive HEALS Act checks who are also behind on child-support payments will have their once-off stimulus compensation seized.

Debt collections involving wage garnishment, bank levies, or any other collection tool would be expressly illegal if it seized upon stimulus benefits.

“This is a common sense measure that will ensure the $1,200 Economic Impact Payments help individuals meet essential needs during these trying times, and don’t instead end up in the pockets of creditors and debt collectors,” Senator Chuck Grassley (R-IA) said.

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