People across the country are receiving stimulus checks to stay afloat during these trying times. Fortunately, New York is blocking banks and debt collectors from seizing stimulus payments delivered to residents by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Our New York debt relief attorneys explain how New York is protecting millions of New Yorkers from creditor harassment.
Banks & Creditors Blocked from Seizing Stimulus Checks
As people are struggling with debts and payments more than ever, New York’s attorney general said banks and collectors can’t freeze or seize stimulus funds. Congress and President Trump stated that stimulus checks “were not designated as exempt for garnishment.” Debt collectors won’t be able to benefit from the government’s aid during this time.
Institutions, banks, or creditors who violate this order can face serious legal action.
Under New York law, certain types of property, including public benefits like public assistance, social security, and veterans’ and retirement benefits, are exempt from execution, garnishment, or another legal process by a creditor.
CARES Act Stimulus Checks
The CARES Act authorized the U.S. Department of Treasury to send billions of dollars to Americans struggling as a result of the economic fallout due to the COVID-19 pandemic. However, this government aid is being provided to people to assist them—not for creditors to garnish. According to the CARES Act, the emergency stimulus payments of up to $1,200 are meant to help people with the costs of essentials, like housing, groceries, car payments, and other necessary expenses.
“As the coronavirus crisis continues to wreak havoc on our society, I will do everything in my power to protect the wallets of every New Yorker,” said Attorney General James.
If you’ve received the stimulus check and you’re still facing overwhelming debt, our team at Jacovetti Law, P.C. is here to help you obtain debt relief. Contact our New York debt relief attorneys today at (516) 217-4488 to schedule a virtual consultation!