Debt Collectors Are Going After Stimulus Checks, Here’s What You Need to Know
Did you get your stimulus check yet? If not, don’t worry, people are posting like crazy on social media that they got theirs yesterday. They are rolling out and you should have yours soon if you qualify.
I am also reading posts from a lot of concerned people.
People are behind on things already, a lot of us were behind on things before this even happened.
But now, people are worried about debt collectors garnishing the money before they can use it to buy groceries, pay utilities, and pay rent.
We all know we need to pay past debts, but right now with so many of us unable to work, this money is barely enough for one month of bills.
Shoot, for some people this may not even cover rent. So most of us really do need every penny of it just to attempt to get by.
You need to know your state laws. Some state and local governments have issued emergency orders to prevent such a thing from happening right now.
I live in Texas and this is one of the states that did put in orders to attempt to stop this from happening.
Other states and cities that have similar orders to either stop all or some garnishments are Las Vegas, Massachusettes, D.C., Washington, and as I stated above, Texas. Deleware already had a preexisting law on this.
If you are a Veteran or receive Social Security, SSI, or some other federal benefits then there is a U.S. Treasury rule that exempts garnishment of any amount equal to two months of federal benefits.
Another option that would be smart would be to move the money immediately.
Move it to a prepaid card or a bank about that is from a small credit union or bank. From what I have read, creditors are less likely to serve a smaller bank with garnishment orders.
You could also just pull it out all together. If you got a check, then cash it, don’t deposit it. If you got a direct deposit, get your funds out of the banks.
Right now you need to focus on the NOW and right now you need to have utilities, food, and a roof over your head.
We can work on debts after we get back to work.