Good Question: Can your stimulus check be taken away by debt collectors?

CHARLOTTE, N.C. (WBTV) - Millions of Americans will soon receive their $1,400 stimulus check.

Last week, the American Rescue Plan was passed, which includes direct payments for most people. They’ll go to individuals earning up to $75,000 per year or married couples who earn up to $150,000.

A viewer, who wants to remain anonymous, asked this:

Can bill collectors take our stimulus check this time?

The answer is Yes.

Your check can be collected if you have unpaid debts.

However, this only applies to certain types of debt.

There are three main kinds:

• IRS tax debt.
• Other government debt - so things like child support or private debt.
• Things like credit card debt or medical bills... and in some cases, private student loans.

These checks are not protected from private debt. So, a private collector could garnish it.

Why is this happening? It’s because of the way this COVID relief package was passed.

Everything was authorized through a process called budget reconciliation.

Under this process, a funding bill only needs a simple majority to pass... instead of the usual 60 votes required.

Consumer and banking trade groups are calling on Congress to pass a bill that would prevent this.

Senator Ron Wyden is expected to introduce a bill but he hasn’t yet.

If you have a Good Question, send it to us. We’ll try to get you an answer.

Use the hashtag #OYSTonight on Twitter or email GoodQuestion@wbtv.com.

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