Why $1400 Stimulus Checks Could be Garnished for Unpaid Debts

CNBC
Wednesday, March 10, 2021

Like the previous two rounds of checks, the $1,400 direct payments will come with eligibility rules based on income and other requirements. However, because these new checks are set to be authorized through a process known as budget reconciliation, they will not be exempt from garnishment. Consumer and banking trade groups, including CDBA, sent a letter to Congressional and Senate leaders on Monday calling for the stimulus payments to be exempt from garnishment. “Otherwise, the families that most need this money — those struggling with debt and whose entire bank accounts may be frozen by garnishment orders — will not be able to access their funds,” the letter said.