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More COVID Stimulus Money On The Way

Cyn Mackley by Cyn Mackley
December 20, 2020
in National
money

Petition to raise Ohio minimum wage certified

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After months of sometimes bitter bickering, Republicans and Democrats have finally agreed on a $900 billion COVID stimulus bill.

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Senate Majority Leader, Mitch McConnell announced the deal on the Senate floor Sunday. “Tor the information of all senators and more importantly for the American people, we can finally report what our nation has needed to hear for a very long time: More help is on the way.”

Half the Previous Stimulus Money

While the package includes stimulus payments and more unemployment benefits, the amounts are half of what the previous package passed in the spring offered. The bill includes $600 one-time stimulus payments and an additional $300 a week in benefits for those put out of work by COVID-19.

Can they hold onto your stimulus check for debts, back taxes, or child support? Here’s what Ohi Attorney General Dave Yost had to say about the last round of stimulus money:

Debt Collectors

Yost says he’s alerted creditors and banks that COVID-19 stimulus checks are protected by Ohio law. He’s posted a notice on the state’s website in case any companies have questions.

“The stimulus checks were intended to be used during an emergency – to put food on the table, keep the lights on, and a roof over our heads,” Yost said. “It wasn’t meant to pay off an old bill,” Yost said.

Federal law prohibits the checks from being garnished for debts owed to federal or state governments. But there’s no mention of debt collectors. That’s why Yost thought it was important to issue the notice about state law. “Sometimes, state law gives greater protection than federal law.”

Back Taxes

Yost says the checks are also exempt from state and federal attachment for back taxes.

Yost cited Ohio Revised Code 2329.66(A)(12)(d) and said it applies to payments under the Coronavirus Aid, Relief, and Economic Security (CARES) Act:

A payment in compensation for loss of future earnings of the person or an individual of whom the person is or was a dependent, to the extent reasonably necessary for the support of the debtor and any of the debtor’s dependents.

Student Loans

If you are in default on a federally guaranteed student loan, they will not be able to garnish your stimulus check.

Child Support

The CARES act does allow money owed for back child support to be garnished.





Tags: CoronavirusCOVID-19FamilyFeaturedlegal

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