How Debt Collectors Could Garnish Your Latest Stimulus Check

Can your 3rd Stimulus check get garnished? It depends on who's trying to get it.

If you owe money then there's a chance you might have all or part of your COVID relief check garnished. Find out how and what lawmakers are doing to prevent it from happening.

Don't start spending that stimulus check until it has been cashed and you have the money in your hand or until it hits your bank account.

Most of us owe money to someone whether it's a credit card company, financial institution or maybe even a friend or family member. According to statistics about 80% of Americans were in some form of debt in October of 2020 and there's a good chance that number has increased. Some of us owe the state and federal government money as well. Can they take that money back or just not issue it at all?

Unlike tax refunds, government stimulus checks have many protections against garnishments but according to Fortune, the latest checks aren't completely safe from having your money taken to offset a debt especially if you owe a significant amount of money.

The IRS has apparently waived federal debt when dishing out stimulus checks. However, state debts aren't exempt. If you have a debt owed to your state or multiple states there's a chance collectors could come after your stimulus. Private collectors could also make a case and attempt to get it as well.

Basically, your third stimulus check cannot be garnished by the federal government but if the state wants it they may be able to take it. They also may allowd private collectors to take it as well.