Can the New Stimulus Be Seized? What You Need to Know

Congress recently passed another stimulus check, the third of its kind intended to help Americans stay afloat financially during the COVID-19 pandemic. However, one question is at the forefront of many people's minds: "Can someone seize my stimulus to repay a debt?" Today, we're here to answer that question and more.

At The Law Offices of Jason K.S. Porter, P.A., our attorneys help clients navigate family and criminal offense disputes. To schedule a consultation with our team, contact us online or via phone at (904) 701-0591.

Understanding the Third Stimulus & Income Limits

Before we begin, it's important to note that the third stimulus differs from the previous two stimulus packages in several significant ways, one being the income limit required to qualify for the stimulus in the first place.

Only single taxpayers with an adjusted gross income below $75,000 qualify for the full $1,400 stimulus. If a single taxpayer has an adjusted gross income (AGI) of $80,000 or more, they won't receive any stimulus money at all. That could be important information for individuals with higher AGIs that expected to receive the stimulus.

Can My Stimulus Check Be Seized?

The third stimulus check doesn't have the same protections against collection as the previous two stimulus packages, meaning that yes, it can be seized by debt collectors to repay debts or liabilities. While the check cannot be seized to repay tax debt, child support, or other types of government-owned debts, it can be seized to repay private debts such as those accrued in a civil judgment or civil damages.

The third stimulus also has other idiosyncrasies, such as lifting eligibility requirements for dependents - parents and guardians or conservators of adult dependents will receive extra stimulus funds, something that didn't happen with previous bills.

At the Law Offices of Jason K.S. Porter, P.A., our attorneys help clients resolve complex family law and criminal law disputes. To schedule a consultation with our team, contact us online or via phone at (904) 701-0591.