Do you have a pending or existing garnishment? If so, you may be worried about your Child Tax Credit being garnished too. Here is what you need to know:
What is the Child Tax Credit?
The Child Tax Credit was created in 1997, but new changes to the existing credit will provide advance payments starting soon. For the tax year 2021, the Child Tax Credit has increased to $3,600 for children 5 and under and $3,000 for children ages 6-17 at the end of 2021.
According to the IRS, “[t]he IRS will pay half the total credit amount in advance monthly payments beginning July 15. You will claim the other half when you file your 2021 income tax return. These changes apply to tax year 2021 only.” For more information on if you qualify, visit the IRS website.
So, is My Child Tax Credit at Risk of Garnishment?
Good news! California is one of a number of states that enacted protections for COVID-19 assistance According to the executive order that was issued by Gavin Newsom, it is illegal to garnish any provided financial assistance due to COVID-19. So, rest assured that your Child Tax Credit is protected from collectors and creditors.
Looking for a Way Out of Garnishment?
While bankruptcy can be a scary thought, it is a great way to stop a wage garnishment fast. Once your bankruptcy case is filed, the judge will issue an order to all of your creditors to stop any attempts to collect. This includes a wage garnishment. Contact our office today to learn more about what options will work best for your situation.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like you to get to know us. We want you to be sure that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.