COVID-19

Resources

Webinar

Registration

Blog

  • Contact Us
  • Follow Us:

Stotler Hayes

Providing Legal assistance to Health Care Providers

  • Who We Are
  • Practice Areas
  • Employment
  • Resources

Massachusetts Attorney General Issues Guidance Regarding Stimulus Funds

Apr 15 2020

On April 13, 2020, Massachusetts Attorney General Maura Healey’s office published guidance regarding the treatment of the stimulus funds issued to many Americans by the Federal Government as a result of the Coronavirus Aid, Relief, and Economic Securities Act (CARES Act). According to the Mass AG’s office, the stimulus funds are considered to be “public assistance” under Mass. Gen. Laws c. 235 § 34 cl. 15, and therefore are exempt from seizure and/or garnishment under Mass. Gen. Laws c. 235 § 34 or attachment under Mass. Gen. Laws c. 223 § 42. According to the Massachusetts Attorney General: “[a]ny creditor… that threatens or takes action to garnish, attach, or otherwise seize funds paid to individuals under… the CARES Act is engaged in conduct that violates the Attorney General’s Debt Collection Regulations.”

What does this mean for you as a creditor? Essentially, this guidance states that a debtor cannot be compelled through judicial action or the threat of judicial action to pay a creditor with the funds received as a result of the CARES Act. While the Massachusetts Attorney General has already introduced an Emergency Regulation suspending most debt-collection practices (for analysis of the Emergency Regulation, please refer to our previous blog), this new guidance adds an additional level of protection for the debtor.

While the new guidance prohibits a creditor from pursuing involuntary payment out of CARES Act funds through judicial processes such as garnishment, neither the Act itself nor the Massachusetts Attorney General’s guidance prohibit the debtor from voluntarily making a payment to a creditor out of these funds. In light of this, it would not be inappropriate for a creditor to request that a payment towards an outstanding balance be made as long as the request does not otherwise violate the current moratorium on debt collection measures. Such a suggestion would have to make clear to the debtor that they are under no obligation to apply any funds that are considered to be “public assistance” as defined by Mass. Gen. Laws c. 235 § 34 and that there are no penalties for the failure to do so.

If you would like guidance regarding your rights and collection options as a creditor during this period, please reach out to us at Stotler Hayes Group, LLC.

Written by Stotler Hayes · Categorized: COVID-19, Massachusetts

Stotler Hayes Group, LLC is a national, boutique law firm focused on optimizing recovery for health care providers through Medicaid, Medicare, private collections, training and education. Our attorneys are licensed in, and represent clients before, federal and state courts and agencies in a majority of states around the country.

In the handful of states where Stotler Hayes Group, LLC does not employ a full-time attorney, referrals are made to local counsel, many of whom we have developed close working relationships with over the years. In those cases, our firm works with local counsel throughout the pendency of the case.

Stotler Hayes Group, LLC,

Principal Office: Pawley’s Island, SC, Phone: 843-235-9871; Fax: 888-497-7390; email: info@stotlerhayes.com

This website is for informational purposes only. Please remember that every case is different. Any result we achieve for one client in one matter does not necessarily indicate similar results can be obtained for other clients.

The attorney responsible for the content of this website is Andrea Kirksey, Esq., Executive Director and General Counsel for Stotler Hayes Group, LLC, 297 Willbrook Boulevard,  Pawley’s Island, South Carolina.

She may be contacted at (843) 235-9871, ext. 1002 or at akirksey@stotlerhayes.com.

Home                           Contact Us                    Disclaimer

 

Website Designed by Southern Tide Media