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Stimulus Money Fair Game for Creditors

(Indianapolis, IN) - According to the Indiana Supreme Court, creditors can come after your stimmies.  Early this week, the state’s high court ruled that stimulus money can be garnished by people or businesses you owe money to.

 

The American Rescue Plan Act, which authorized the stimulus payments, does prohibit the IRS from garnishing for back taxes. However, it does not protect the money from private sector debt collectors like hospitals, landlords, and credit card companies.

 

The court did not offer an explanation for its ruling. Previous rounds of stimulus money had been protected from creditors, but not anymore.

 

Hoosiers started receiving the new $1400 payments over a week ago.

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