YOUNGSTOWN, Ohio (WKBN) – With stimulus checks starting to roll out, many are wondering if their credit history, back child support, defaulted student loans or other issues may impact delivery of their money.
USA Today is reporting Thursday that those who are in default on their student loans will get a reprieve on their wage garnishment and receive a stimulus check.
Under the CARES Act, the government won’t take the money out of your wages or withhold social security payments under the relief package, the news outlet reported.
In addition, federal student loan payments are suspended until September, with zero percent interest accumulation.
Typically, back taxes can be deducted from tax refunds, but it won’t impact your stimulus payment, according to Forbes. However, if you owe money to your banking institution where your money is being direct deposited, under some laws, that money can be taken by the bank for the fees you owe.
According to the Justice Department, the stimulus payment will not be counted as income for those involved in bankruptcy.
Concerns could arise for those who owe child support. If you are behind in payments, child support enforcement agencies can intercept that money, according to Judge Beth Smith, Mahoning County Domestic Relations Court.
If your child support payments are on time, your stimulus check won’t be touched.
Stimulus checks are protected from bill collectors under Ohio state law, according to Ohio Attorney General David Yost.
You can track your stimulus payment through a new tool launched this week by the IRS.