Protecting Child Tax Credit 2021 From Debt Collectors

TL;DR

Learn how to protect your child tax credit funds from garnishment if you have a judgment or debt against you.

Transcript

hey everybody john skiba and in this video i'm going to talk about this child tax credit that the government is going to start sending out two days from now on july 15 2021 the third stimulus the child tax credit is going to start coming out as far as payments go i want to talk about how to protect those funds once they hit your account and it's a ... Read More

Key Insights

• 👪 The child tax credit payments will be sent monthly from July to December, providing significant financial support for families.
• 👶 If you have a judgment or debt, there is a risk of garnishment for the child tax credit funds.
• 👨‍🔬 Research your state's exemption laws to understand and protect your funds.
• 👶 Some states, such as California, Colorado, Maine, New York, Ohio, and Virginia, have implemented laws to protect child tax credits.
• 👥 Consider joining a private Facebook group for discussions and guidance on debt collection, lawsuits, bankruptcy, and related topics.
• 📞 Beware of the potential garnishment risks even after receiving the first payment, as they may continue in the subsequent months.
• 🏮 Cash the paper check instead of depositing it to avoid potential garnishment.

Questions & Answers

Q: How is the child tax credit different from previous stimulus payments?

Unlike previous stimulus payments, the child tax credit is an advance on a tax credit rather than a direct payment. Half of the credit is paid monthly from July to December, and the other half is received as a credit when filing taxes in 2022.

Q: What are the risks of garnishment for child tax credit funds?

If you have a judgment or debt against you, there is a risk of garnishment for the child tax credit funds. Creditors and debt collectors may try to seize the funds through wage garnishment, bank levies, or freezing of accounts.

Q: Are federal student loans exempt from garnishment?

Federal student loans are protected from garnishment. The government has stated that the child tax credit funds will not be intercepted to pay past-due federal student loans.

Q: How can you protect your child tax credit funds from garnishment?

If you have a judgment pending, it is advisable to not keep a large amount of cash in a checking account where the funds will be deposited. Research your state's exemption laws or wild card exemptions to determine if your funds can be protected. Consider not keeping the funds in the account or consult a professional for guidance.

Summary & Key Takeaways

• The government will start sending out child tax credit payments on July 15, 2021, as part of the third stimulus.

• Unlike previous stimulus payments, the child tax credit is an advance on a tax credit, with half paid monthly from July to December and the other half given as a credit when filing taxes in 2022.

• If you have a judgment or debt, there is a risk of garnishment of the funds, so it is important to take protective measures.