Sisolak signs directive protecting stimulus money from garnishment

Gov. Steve Sisolak signed a directive Thursday that protects money received through federal stimulus legislation from garnishment.

The move came as an administrative order in Las Vegas Justice Court was set to expire. The order, which stopped the seizure of money or assets, left the protection of stimulus money unclear. A Henderson Justice Court official said that court had a similar order that also expired Thursday night.

“During this period of economic uncertainty and hardship, this is not the time to create additional financial stress on Nevadans who are struggling to make ends meet,” Sisolak said in a statement. “This measure ensures that federal stimulus money intended to help Nevada’s families and individuals actually stays in their pockets.”

The order prohibits garnishments beyond those of stimulus checks, but, according to a news release, does not apply to judgments for child support, spousal support or restitution for crime victims. Money or property seized after the date of the directive must be returned to the debtor, according to the order.

Under the federal stimulus bill, eligible individuals receive $1,200, while those filing joint returns could receive $2,400. Those with eligible children receive an additional $500 per child.

Without Sisolak’s order, those facing the prospect of having money taken out of their bank account would have been required to file exemption claims with the courts to stop the process.

The order expires when the state of emergency ends.

Last month, Attorney General Aaron Ford was part of a group of attorneys general calling on the U.S. Department of the Treasury to make stimulus checks exempt from garnishment.

California Gov. Gavin Newsom issued an executive order last month that makes stimulus money or other forms of financial assistance from the government exempt from collection. The order includes money in a bank account of someone who received financial assistance from the government, “to the extent those funds are traceable to the financial assistance received by that individual.”

Contact Blake Apgar at bapgar@reviewjournal.com or 702-387-5298. Follow @blakeapgar on Twitter.