Hoosiers’ stimulus payments may not be seized by creditors for past-due bills, under an order from the Indiana Supreme Court Monday. During state officials’ COVID-19 press conference Tuesday, Cynthia Carrasco, deputy general counsel for the governor, explained that Indiana Legal Services and other groups had petitioned the court to protect stimulus checks.
“The groups argued that the checks were intended to help households cover basic necessities, such as food and rent, during the COVID-19 emergency,” Carrasco said, “and as such, that creditors should not be allowed to take the stimulus money from their debtors.”
The Supreme Court technically approved part of the request while denying part of it. In a four-to-one decision, the Supreme Court ordered that courts may not issue any new orders to garnish stimulus payments. When it comes to previous orders, those owing money may request a court hearing to determine how much of the money in their account stems from the stimulus check. However, these protections do not apply to child support orders.
