CARES Act Provisions
For example: if you owe money to a private collector, all or part of your check can be used to offset the balance of what you owe. If you owe money to a bank; either for unpaid internal credit cards or loans that have yet to be sold to collections, they can claim your stimulus check. Or, if the state you live in has referred your past-due child support payments to the Treasury Offset Program (TOP), then they are legally allowed to seize your stimulus.
One thing they can’t do, though, is take your stimulus to offset your tax debt. Oh, they can take it if you owe money on a car, but if you’re either on a payment plan or owe taxes from 2019, (the filing date for which has been moved to July 15th) then they aren’t legally allowed to take your money under the CARES Act. Neither are they allowed to include your stimulus check in calculations of monthly income while you are filing for Bankruptcy.
The stimulus package also includes provisions for those who are in default of their federal student loans, making it unlawful to seize your stimulus funds to offset your loans. Also, payments on federal loans have been suspended with zero percent interest until September 30th, 2020.