In the federal government’s ongoing effort to revive the U.S. economy and help people harmed by the economic damage wrought by the coronavirus pandemic, an important detail has gone under-noticed: the most recent set of federal stimulus payments to individuals are subject to garnishment by creditors. And this fact is creating legal and operational challenges for the banking industry.… Continue Reading
EIPs
New COVID-19 Economic Relief Legislation Provides Exemption for Economic Impact Payments from Garnishment by Private Creditors and Debt Collectors
By Lori J. Sommerfield on
On December 21, Congress overwhelmingly passed a consolidated bill (H.R. 133) that contains $1.4 trillion in appropriations to keep the federal government funded until October 2021 and $900 billion in coronavirus economic relief. The latter is found in Division N of the lengthy bill (which runs over 5600 pages) entitled “Additional Coronavirus Response and Relief.”… Continue Reading