New York: Legislation Protecting COVID Stimulus Payments

Governor Cuomo Signs Legislation Protecting New Yorkers’ COVID-19 Stimulus Payments from Debt Collectors

New York (STL.News) Governor Andrew M. Cuomo signed legislation (S.5923-A/A.6617-A) protecting New Yorkers’ COVID-19 stimulus payments from being garnished by debt collectors.  All relief payments to New Yorkers under these federal acts, including stimulus payments, tax refunds, rebates, and tax credits to support individuals and children qualified for or received prior to the effective date, will be protected.  This legislation also creates a carve-out for claims brought by individuals who have an interest in the relief payments to ensure that these funds can be collected to pay child and spousal support and to collect payments in situations involving fraud.

Any person who is subject to a money judgment being enforced against their bank account will receive a notice that COVID-19 stimulus funds are protected and if they have been inadvertently frozen by a creditor, they should promptly return a form included with the notice to get those funds released.

“New Yorkers in every corner of the State felt the effects of the COVIDpandemic, many losing jobs due to no fault of their own and struggling to support themselves and their families,” Governor Cuomo said. 

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