Indiana Supreme Court declines to protect stimulus payments from private debt judgments

Hoosiers struggling under the burden of overdue, unpaid debts could see the money they owe deducted from their $1,400 federal stimulus check.

The American Rescue Plan, enacted earlier this month by Democratic President Joe Biden, does not include the same protections against income garnishment by private creditors that applied to the prior CARES Act payments.

As a result, unpaid private debts owed to a hospital, credit card company, landlord, auto retailer or any other entity that has secured a collection order through a court may be able to grab some or all the debtor’s stimulus payment to satisfy the obligation.

At the same time, the American Rescue Plan bars the federal government and states from garnishing stimulus checks to collect on past-due taxes and similar debts, such as overdue child support payments.

Read more: https://www.nwitimes.com/news/local/govt-and-politics/indiana-supreme-court-declines-to-protect-stimulus-payments-from-private-debt-judgments/article_607d37c0-d202-5084-bdc6-41d1ebcf870b.html
(Northwest Indiana Times)