CAN CREDITORS SEIZE YOUR SOCIAL SECURITY CHECKS?

Can Creditors Seize Your Social Security Disability Benefits?

 

Generally speaking, the law protects your Social Security benefits from garnishment by creditors.  There are exceptions, however.  The law does not protect you from the federal government itself.  If you default on a federally guaranteed loan, such as a student loan, your Social Security disability benefits may be garnished to pay for the delinquent debt.  

 Your benefits can also be garnished to pay for child support or past due alimony.  However, you must have at least $750 per month left after any garnishment.  

 It's a different story if you owe federal income tax.  The government may seize all of your money to satisfy a tax lien.

 If you receive Supplemental Security Income (SSI), these benefits are totally exempt from garnishment by anyone, including the government.

 Just because your Social Security check is not subject to garnishment doesn't mean that creditors won't try to seize your money.  If they get their hands on it, you probably won't get it back, even if it was taken illegally.  So, take some precautions now.

 The best thing to do is put all of your Social Security income into a separate bank account and put no other money into that account--not even one cent.  That way, it is easy to prove that all of the money in the account came from Social Security.  This makes it much, much easier to defend against garnishments and seizures.  Never mix Social Security money in the same bank account with any other income or funds.

 If you think that a creditor may try to seize or garnish your bank account, notify an officer of the bank (not a teller, an officer) that all of the money in your account is Social Security money and that it is exempt from garnishment.  Try to do this before the garnishment is attempted.  That way, the bank is aware of the protection (hopefully) and will not allow your money to be frozen or seized in the first place.   

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THE FORSYTHE FIRM

Social Security Justice

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