Forbes recently published an article about how it may be possible for debt collectors to seize a person’s stimulus check if they owe money for private student loans, credit cards, and/or medical bills. While the CARES Act protects against collection against most federal and state debt, it unfortunately does not protect against the collection of private debt. According to the article, approximately 71 million, or 1 in 3, Americans have some form of debt, meaning that millions of Americans could potentially be affected if private debt collectors try to access their stimulus checks.
Considering the significance of this issue and how it could be particularly devastating for low-income individuals and families who need this money for food and housing expenses, governors from many states, such as Washington and Illinois, have already issued executive orders to prevent this from happening.
Link to article: https://www.forbes.com/sites/zackfriedman/2020/04/20/stimulus-check-seized-private-debt-collectors/#70203c0e1f2d