For many individuals, it feels like the rug has been pulled out from under their feet due to the COVID-19 pandemic. Even if you have not personally been affected by the disease itself, you have likely felt the financial strain of the rough economic situation. The promise of a stimulus check provides many families with the hope of getting their finances in control and their mounting bills paid. However, before you start planning the best ways to use your stimulus check, it’s important to ensure that the money will actually be given to you!
What is the Stimulus Check?
The stimulus check is a government-issued payment that is part of the CARES Act. This check provides $1,200 for individuals and $500 for each child. The check can be used to catch up with bills, fill in gaps where unemployment isn’t meeting your budget, and breathe life back into the economy. While everyone is looking forward to the stimulus checks during these difficult times, if you have creditors or own debt then your payment may be at risk of being taken before it ever reaches your hands.
Can Creditors Take My Stimulus Check?
Many of the nation’s most in-need families are likely to be in for a sad surprise when they realize that their check is far less than they had expected. While most creditors cannot take directly from your payment, there are ways that they can get your money. Listed below are some of the most common ways that your stimulus check can be taken:
- Child Support: If you are behind in child support, then the government can automatically take your stimulus money to cover what you owe.
- Bank Overdraft Fees: If you owe overdraft fees at your bank, you may be surprised to see that your payment is significantly reduced when it hits your account.
- Debts Tied to Your Account: If you have a lien against your account due to a credit card, personal loan, or medical bill judgment then creditors may be eligible to take your money.
Protect Your Stimulus Check!
Receiving your full stimulus check is one way that you can regain your financial footing and help your family get back on track with bills. When a creditor dips into your check and drains it, it makes it impossible for you to take advantage of this emergency money. Thankfully, there are ways to protect your stimulus check! First, you need to ensure that it won’t be directly deposited to an account where you have a negative balance or one that has a lien against it. The second, and best, way to ensure your stimulus check is protected is through a bankruptcy.
If you are involved in a bankruptcy, your money will be protected against all creditors other than child support collectors. By pursuing a bankruptcy now, you can set up manageable payments for your future and ensure that your stimulus money is available for you to handle as you see fit.
COVID-19 has been a challenge physically, mentally, and economically. By pursuing a bankruptcy, you can ensure that you get the stimulus money you deserve to help you get back on track. Contact us today to learn more about how you can get started on the path to financial freedom!
The attorneys at Sadek and Cooper Law Offices have handled thousands of Bankruptcy cases in Philadelphia and the surrounding counties of Montgomery, Delaware, Bucks, and Chester. We are also licensed in the State of New Jersey. Contact us today to schedule your free consultation at 215-545-0008.