« Lebanon’s Unusual Pari Passu Clause and the Question of How to Construct Credible Priority | Main | CARES Act "Rebates" and Bankruptcy »

Treasury Must Act Now To Protect Relief Payments From Debt Collectors

posted by Pamela Foohey

The CARES Act provides for direct "rebate" payments to American households. Treasury is gearing up to send some of those payments out soon. But Congress forgot to protect the payments from garnishment. American families may see needed funds deposited into their bank accounts only to watch that money disappear. Slipster Dalié Jiménez, Chris Odinet, and I just published a short piece on the Harvard Law Review blog detailing this problem and proposing a simple solution that Treasury Secretary Steven Mnuchin should implement ASAP. 

Comments

The optimism expressed in the Harvard piece, that this was an unintentional, inadvertent oversight that will of course be fixed, appears to be sorely misplaced. It's more likely a feature than a bug:

https://prospect.org/coronavirus/banks-can-grab-stimulus-check-pay-debts/

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF