Indiana court allows seizure of federal relief payments

Indiana

INDIANAPOLIS (AP) — Indiana residents with past-due debts could see that money taken from the new federal pandemic relief payments that have been arriving in bank accounts.

The Indiana Supreme Court this past week turned down an emergency petition filed by advocates for low-income families that sought to protect those payments of up to $1,400 a person from garnishment by private creditors.

That request was made because the American Rescue Plan signed by Democratic President Joe Biden does not include the same protections against seizures that applied to previous CARES Act payments. The state Supreme Court didn’t explain the decision.

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