Can Social Security Be Garnished?

If are living on a limited income from social security, then you may need every last penny to cover all your necessary living expenses. Many times because of the limited income you are living on, you may have incurred necessary medical expenses or have had to use credit cards to cover some monthly living expenses. Unfortunately many times you may end up owing medical bills, credit cards, or the government a debt that you cannot afford to repay back. You may be concerned about whether these creditors can come after you and whether they will be able to garnish your social security benefits or SSI. The answer is that it depends on who is the creditor and for what are they trying to garnish you for.

Regular Creditors

The social security act states: "The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law."

What this means is that regular creditors cannot garnish or seize your social security or SSI benefits to collect on a debt that you have not been able to pay back. Creditors cannot garnish your social security check for unpaid medical bills, personal loans, pay day loans, and credit cards. Although these creditors may still have a right to call you to collect on the debt, they will not have a right to collect that money from your social security benefits. Even if one of these creditors obtains a judgment against you, they will not be able to enforce it against your social security benefits.

Can the Government Garnish Your Wages?

Although regular creditors cannot garnish or seize your social security disability or SSI benefits the government has certain privileges when it comes to garnishing your benefits. If you owe the federal government taxes then they are allowed to garnish your wages to pay off this income tax debt. The IRS code appears to allow the federal government to collect your past due federal income taxes from social security retirement or SSDI, but not from SSI benefits.

Another exception to this is student loans. If you have a federally guaranteed student loan that you have defaulted on, then you can be subject to having your social security benefits garnished. A Supreme Court Case in 2005 (Lockhart) made it legal for the government to seize your social security benefits for unpaid student loans.Again SSI benefits cannot be garnished for this purpose.

Can Social Security Benefits Be Garnished for Child Support and Alimony?

Child support and alimony payments can be garnished from your socials security benefits. Although there are few items for which your social security or SSDI benefits can be garnished, these categories fall in that realm. If you are past due on your child support or alimony support payments then be aware that you benefits may be garnished. (SSI cannot be garnished for child support or alimony payments)

How to Protect Yourself If You Are on Social Security?

If you are on social security and are being harassed for debts such as medical bills, personal loans, or credit cards and you have no assets then you have several options.

One option is to send a strongly worded statement to each creditor that explains to the creditor that you are on social security benefits, and have no assets to collect the debt on, and therefore wish to have any further contact seize.

• Sample Text: I am contacting you to inform you that I can no longer afford to pay this debt. Due to my limited income , I cannot afford to cover my monthly living expenses and pay this bill. I have no assets and my only source of income is Social Security. As you are aware of, you cannot garnish or seize my social security benefits. I do not wish to be contacted in regards to this debt. Please remove me from any mail or telephone lists.
• This letter should be sent certified mail and is more effective if you can refer the creditor to an attorney. Generally attorneys will charge you a fee to have creditors referred to their office,
  

Second Option is to file for bankruptcy. It may not be necessary for you to file for bankruptcy, if you have no assets and only live on social security. This may be an option if you wish to ensure that there is no possibility of any future communication with the creditor and to rebuild your credit.

Do not deposit your social security income into a bank account. Although legally creditors cannot seize your socials security benefits, if they have a judgment against you they may seize the funds initially. You will have to then establish that these funds are exempt from execution. If you want to avoid the hassle of this potential situation, you may wish to simply avoid depositing your social security or SSI income.

Consult with an experienced attorney to determine your full options and to ensure that your benefits are protected from creditors.