Oak Park Real Estate & Estate Planning Blog

As you might have read, President Biden recently signed the American Rescue Plan, which includes another round of stimulus payments to American households. Indeed, many Americans will be eligible to receive a $1,400 stimulus payment as part of the $1.9 trillion bill, a payment that millions of consumers need “for urgent expenses like food and housing,” according to an article in Fortune . Yet as that article underscores, debt collectors may be able to take this stimulus payment before it ever reaches the hands of consumers, marking a shift from the rules concerning the previous two rounds of stimulus payments. Debt collectors were not allowed to garnish stimulus checks sent through the CARES Act, but the American Rescue Plan is different due to the way in which the relief package was passed. In short, you should know that a debt collector might be able to take your stimulus payment, and it is important to learn more about what that means for you and what steps you may be able to tak...

If you are like many Americans in and around Chicago, you are struggling to pay your debts as a result of the COVID-19 emergency. You may have received your government stimulus payment in recent weeks. Depending on your income, you could have been eligible to receive a payment of up to $1,200, and up to $500 for each dependent child. Whether you already received your stimulus payment or you are still waiting to receive it, you may have concerns about whether a debt collector can take that money from you if you have outstanding debts. It is an important question to consider given that Congress is in talks about additional stimulus payments for Americans suffering financially as a result of the coronavirus pandemic. So, can a creditor or debt collector take your government stimulus payment? In short, maybe. According to a recent article in USA Today , stimulus checks are not “explicitly off-limits to debt collectors.” As a result, you could have a stimulus payment garnished. Amount ...