Social Security Benefit Checks are Exempt from Garnishment, but….

My daughter was married for less than a year in 2002. In the divorce decree her ex husband recieved the car. They bought the used car for around $6,000.00. It stated she was free and clear of the car. He let the car get repossessed. He filed bankruptcy to get out of paying. They have recently started garnishing my daughters paycheck for $13,000 for the car. She is a single Mother raising a 4 year old. Does she really have to pay double for a car she doesn't own.

If your daughter was a co-debtor or guarantor on the vehicle purchase installment note and her ex filed bankruptcy to discharge his responsibility, then, yes, your daughter will be stuck with the debt.

If, however, the divorce agreement required him to pay the debt, his obligation under the divorce decree might not be dischargeable. This is probably one of those situations where your daughter ought to consult with a lawyer in your area to review all of her options. Jonathan

Due to hear problems I am now 100% disable for life but my ex has sued to have social security automatically send a large part of my social security to her. How can this be?

i have been harass, threathen, verbally abuse by bill collector, true, i got behind in a bill, and really they refuse to set up any thype of payment plan because i am too far behind, and they want all the money, it has increase due to finance charge they keep adding, i am on ss diability, and they threaten to get by money out of the money what do i do.

My mother is on Social Security and also get a L&I Pension from my deceased fathers L&I Pension he was receiving when he was alive… We know they can't get her Social Security.

Now my mother is in debt and the family is afraid her checking account might be seize or garnished before we get a chance to make arrangements for payment for her. She has demensia so now she has a POA. Can her creditor garnish her Pension deposit from Labor and Industries. Thanks all your help in this matter will be highly appreciated. Mae

I have been contacted by Love, Beal and Nixon, P.C. regarding an old debt. I have been told they are ruthless and will do what they have to do to get you to pay the debt. Here is my question: I receive Social Security Disability, it is mailed directly to me. I also recieve a small retirement pension from the state of Oklahoma. As far as I've heard, neither one of these can be garnished. I feel safe on the Social Security since it is mailed to me, but by law my state retirement has to be direct deposited. I've heard that once the money gets into your account it becomes an asset and they can freeze your account. Is this true? Can they freeze my state retirement after it's deposited? Do they freeze it every month? Please help me I don't know what to do and can't afford an attorney. Thank you.

I have a son who is SSI and there is so much back child suport taken out of his check he can't even rent a room. He only gets $350 a month to live. Is this legal? He needs help and his worker said there is no help for him and his situation.

Connie, there are a few exceptions to the rule that Social Security money is exempt from garnishment. Tax debt can be collected from Social Security as can child support. If your son has past due child support, his SSI check will not be fully protected.

Assuming that his income is greatly reduced from when the original order was signed, he may want to go back to the state court to ask for a modification for future payments.

I receive Social Security and a small pension of $300.00. I have a credit card that I can no longer pay. I have never been late paying, over the limit, but for some reason the interest rate has been over time increased to 25% and at my age (73) I will never be able to pay it off. Due to rent increase, utilities increased, food cost increased, gas increased, I just can't make the full payment. I have called the card company and get no help, in fact just rudeness. Should I just pay what I can and of course they will charge for that or not pay it at all?. I feel terrible that this has happened, but I have not other income or assets. I live in Senior Housing (HUD) and all my income is going to necessary expenses (rent, utilities, insurance, medicare, Medicare supplement, Part D prescription. Can they garnish my Social Security and small pension which are direct deposited?
supplemental insurance, Part D perscription

Someone please help. My brother is on SSDI, he has a brain injury, he is divorced and his daughter gets a check from SSDI BUT they are also taking money out of his check. He now receives only $300.00 a month to live AND his ex is trying to take that also! She has moved to another state and the courts are telling him he has to get a lawyer in HER state now. He does not have money for food let alone a lawyer. Is there something we can do to change this, I thought SSDI was not allowed to be garnished. Has anyone had this problem? Can anyone offer any advice, and can we get an attorney to do something at no or low cost? We are in Florida. Thanks.

Karen, I believe that Social Security disability payments can be attached for child support. However, this is a situation that will require the help of a lawyer. I would start with a lawyer in the state where the child support order was issued – and you may need to get one in the state where the ex has moved.

I receive workers compensation but after the insurance has paid there half now Subsequent Injury Fund has kicked in but now the Maryland Central Collections Unit is taking 15% of my benefits for laps in car insurance from 1995. I thought workers compensation was exempt from such collections. This is crazy the always hit ya when one is down. I can not get anyone to answer my questions in Maryland.

Hello, I'm hoping someone can help me, help my mom. My stepdad just passed away from a recurring cancer and my 70 yr old mom can't afford the Trailer home they were buying and will have to move.

Also my stepdad took care of all the bills and had signed a loan with a bank for a monthly payment, nothing on the loan, no collateral, shes not going to be able to afford either, and didn't sign with him or it anyway, wasn't aware of it till he passed away.

We live in GA and she will be getting Social Security and Military survivors benefit. He was retired Army. Does anyone know or can someone direct us to the finding the info, if the bank or mortgage company can take her benefits or hold her accountable?

He didn't have a will of any kind.

Thank you for your help.

I LIVE IN TENNESSEE AND HAVE 5 UNSECRUIED CREDIT CARD THAT I TOOK OUT WITH OUT MY HUSBANDS KNOWLEGE. ALLL ARE IN MY NAME ONLY. MY HUSBAND LOST HIS RECORSES OF INCOME AND I LOST MY EXTRA INCOME ALL I HAVE LEFT IS MY DISIBALITY CHECK FROM ss I AM BEING HOUNDED TO MAKE A PAYMENT CAN MY CHECK BE GARNISHED OR CAN THEY GO AFTER MY HUSBAND?? .HIS ssd IS ABOUT TO BE APPROVED?

NEED ANSWERS FAST. ESTHER

c

Connie, SSI cannot be garnished for any reason, even child support. SSI is not the same as SSDI and I believe the US Supreme Court has ruled that SSI is not garnishable for any reason. This is because SSI is not social security and intended to provide the receipt with enough money to meet his basic needs. Here is a link to an Illinois case which explains why:

http://www.state.il.us/court/Opinions/AppellateCourt/2001/2ndDistrict/August/Html/2000315.htm

Anthony, Texas

Can Social Security Disability or SSI be garnished by credit card collectors? Are there any Laws that would be helpful to me when I go into court?

My Mom has 5,000 Dollars in credit card debt. She is currently being taken to court by a collection agency in Illinois (the credit card was held in Wisconsin) Her only means of income is ssdi benefits she also has a payee "THATS ME " HER COURT DATE IS TOMMAROW WHAT SHOULD I DO?

Ryan, I can't offer legal advice to you via a blog – you and your mom ought to speak with a lawyer in the jurisdiction where she is being sued. Be aware that you mom's status as a Social Security recipient can protect her from enforcement of a judgment. The credit card company can still obtain a judgment. As noted, you should verify that the bank account where her money goes is not co-mingled with other funds (yours or hers). I would also notify opposing counsel that if he attempts to seize Social Security derived money he could be liable for damages. Again, this is a situation where it would make sense to consult with a lawyer for legal advice specific to your situation.

Call the department of revenue who controls the child support in your state, ask for a modification of child support . They will say they can't do that but thats not true i was lied to and i went to the department of revenue website and downloaded the forms and filled them out right away and fax them to them. I'm on SSDI and there are guidlines for the disabled who receive little money. Don't give up i almost did i even hired a attorney to help me on this matter and nothing was done except my money was taken and i was robbed . I would not go down that road you will be waisting your time. Do not let them tell you nothing can be done thats not true ! You can do alot of reaserch on the internet about this matter i did this all on my own and my child support has been modified by the guidelines of the law. Frank !!!

I am disable due to chronic scoliois and m.s. I have applied for s.s. benefits and was turned down because they said my last place of employment did not withhold s.s. taxes, so does this mean I am just out of luck as far as getting any help from anywhere?

Not a comment, but a question. If a contractual agreement incorporated into a divorce decree states that a spouse will receive l/2 of social security from the other spouse, can social security benefits be garnished for this reason, by court order?

My SSDI is $770. Can Sallie Mae Parent Plus Federal Student Loan garnish my SSDI? My loan is not in default yet, but I am now not going to be able to pay it since my husband is waiting on disability, his job gone.

I read on the internet that Social Security allows 15% garnishment to be taken out for Federal Student loans. ?

I also read that one should have the checks sent to a secure mailbox, as the Federal Student Loans seize the money in your bank account, not from Social Security directly. I have no idea if that is true. I would love to find out.

Same person here.

To add:

Also, we will be going through Chapter 7 when the medical bills come in.

If you have lost your house, all retirement money (six figures) have no money but tiny SSDI, husband has turned to applying for disability after 22 years with the same printing shop, The State of Washington employer – so great loss of income…

…would there be a chance at all that one could put the Parent Plus loan into the Bankruptcy under the undue distress clause?

Or is that clause for the strictly deathbed?

I have also considered the Total and Permanent Disability for me. At 52, having Bipolar 1, with a history in two hospitals involuntarily, I am not sure I can work any job but half time. I have a BA in Education.

Thanks if you can shed some light on these three issues: Federal Student Loan method of garnishment of SSDI; undue distress clause in Chapter Seven; and Total and Permanent Disability.

Total and Permanent Disability is a clause in The Parent Plus Loan.

THanks. I'll shut up now.

This is in response to Linda. Interesting question. I would argue that the transfer of the benefit should not change the character of the money but I have never seen this question litigated.

There are numerous laws that prevent certain type of collection activities against S.S. benifits. I am an attorney and wouldbe happy to see if I can give you the info needed to helop you in this matter please feel free to write back with specifics

I HAVE THE IRS TAKING OUT 50% OF MY SOCIAL SECURITY ALLOTMENT, IS THIS IN VIOLATION OF THE TAX PAYERS RELIEF ACT OF 1997, WHICH INIDCATES ONLY UP TO 15% MAY BE GARNISHED? IS THIS 15% STILL VALID? LEN

I was in a car accident that was my fault (ticketed)and I had no insurance on the car at the time. The other driver's insurance company paid out almost six thousand and now wants me to pay them back. My only source of income is SSDI. Can they garnish that income or ??? Thanks

You are WRONG SSI CAN NOT! Be garnished! NOR can it be counted as income for child support! And the court CAN NOT hold you in contempt for not paying, The court may enter an order of support but can NOT enforce it. I STRONGLY suggest getting a lawyer, google child support and SSI, You WILL see that i am correct. Social security CAN be garnished NOT SSI people confuse the two, If your sons only source of income is SSI he can not be garnished form that if the court is doin so the court CAN be sued.

I receive SSDI and my spouse is my Representative Payee. I also receive 100% VA Compensation. I ended up with a lot of unsecure debt waiting for approval of VA and SSDI awards along with my spouse's illness. I am currently with a Debt Resolution Company and have settle one debt at this time.

My question is can creditors garnish or freeze my bank accounts? One account is Social Security funds only with my wife listed as my payee. When the check comes direct deposit it comes in her name. I have a separate account just in my name only for my VA Compensation. No other funds are placed in this account. Can someone give me some guidance as what I should do. Should I drop my name off both accounts and have my spouse as the account owner? Or should I request that each agency send me paper checks?

Patrick

HI, I went through a check cashing company and got a advance and my source of income is only my SSDI. I had to close my account due to fraud and that meant that the loan wasn't paid. Well because the fraud process took up to 3 wks and my account was a huge mess. I was served by the check cashing place because they wouldn't accept a repayment plan that I could afford. Can they garnish my SSDI now and what about my kids SSDI? My kids SSDI goes into a bank account with my name on it but I receive a check for my SSDI. Thanks in advance.

I am 55 years old on social security disability, the only income I have, just got out of divorce. The court awarded my ex wife $50,000 compensation for a house overseas, the house is a family house, I couldn't convince the court that I really don't have that house and I can't do anything about this house. The court imposed a lein of $50,000 on that house.The court in my country doesn't honor any court order from the USA. Can my ex wife garnish my SSDI for payment on this house?

I am 60 years old on Social Security disability and I am unemployed. I have had two student loans, it seems like forever. I have made payments in the past to the best that I am able. I am finding it difficulty to continue making payments due to my financial situation. I am being told that if I can not make payments that the creditors are going to garnish my disability check. Can they legally do this. It's not that i don't want to pay it is that I am unable.

my wife and I are getting behind on medical bills, I am on unemployment and she is getting ssdi. We filed bankruptcy about 8 months ago, these are new bills (about 10,000 worth) they are mainly from an auto accident that my wife was in about 3 yrs ago that our auto insurance refuses to pay ANY of it. We currently have a law suit pending against Our auto insurance as well as the lady who caused the accident.

She has her ssdi going into an account by itself. I have my unemployment going into another account (at a totally different bank). My concern is that they will find a way to garnish us leaving us without the ability to keep a roof over our heads as we are barely able to do now. Between her ssdi and my unemployment (as well as child support I collect from an ex-wife) we have 750 in ssdi, 230 in child support and 1664 in unemployment a month. (total of about 2640) Our house payment is 860 a month, and utilities are another 300. so it consumes HALF of our income just there. Then you add in our car payment (we have to keep a reliable car due to MANY MANY dr appointments), of 340 a month, another 150 in car insurance, that now leaves us with 800 for food for 3 people, gas to get around, phone bill, maintenance on a 4 yr old car.. we have little to NOTHING left at the end of the month. I offered to pay them 20 a month, but they told me they could only do that for 2 months then we would have to pay at least 100 to 200 a month at a minimum!

What can they legally garnish if anything? Is it just 25% of my disposable income (meaning either work wages or my unemployment?) – I assume unemployment is exempt from what I have read thus far. Sooner or later I will either return to work or apply for ssdi myself due to liver disease.

I need to know how to protect my family from ending up on the streets.

One other issue is that I have about 10 medical bills that are in collections with different creditors. There is NO way I can please them all – especially at one time. I have actually quit going to the dr because of this issue, and my health is actually getting worse because of that.

Another question is we did NOT reaffirm on the house when we did the bankruptcy, we only put 500 down on it 2 yrs ago when we bought it. It is worth about what we owe on it. If I should die what will happen with the house. Would they try to seize it even if there is little to no equity at all in it? (to me this would make no sense but then I see stupid things happen all the time). Just an FYI, Most of the debt is in my wifes name, the house is ONLY in mine.

@jose beiro: FIle for a hardship deferment first of all. Second if you are on DISABILITY – and your disability was something that happened AFTER you went to school and took out these loans they have a program to CANCEL the loans completely out (if they are federal student loans which I assume they are) simply call them and ask for the disability forms, your doctor will have to fill them out state your disability and put down a date to when you became disabled, so that you will never have to repay them. My wife almost did that, however by doing that you will no longer EVER be eligible for student loans again. I assume at your age that is not even going to be an issue though.

If they are NOT federal student loans, ie.. regular loans to go to school. Then they are most likely dischargeable in bankruptcy AND they will NOT be able to garnish your SSDI to begin with. Since ONLY federal student loans have the ability to do this, not simple bank loans.

@Fawaz Al-Mohamad: Have your check mailed to you, DO not have them direct deposited UNLESS they are the ONLY thing going into that bank account. My suggestion close ANY account you currently have, open a new account with the MINIMUM allowed ($5 IF ALL POSSIBLE) let them know you are only using it for direct deposit of your ssdi. Then do NOT deposit any money into that account EVER. Get some sort of safe in the house if you have to and keep the money on hand and out of hers.

Then I would get some sort of paperwork from the other country where the house is at, some sort of tax statement showing WHO all has ownership in the house, what its taxable value is, what if anything is owed on the house..ect.. and file an appeal as to that 50,000 judgment. You should be able to file for a hearing without an attorney if you really can not afford one. BUT make sure you have enough paperwork to back you up. She is only entitled to a portion of what your ownership stake is in that house. however it can NOT exceed 100% of what stake you have in the house, but could be up TO 100%, depending on the circumstances as to WHY she was awarded it.

This sort of thing is NOT child support, federal student loans, or taxes, so therefor is NOT allowed to be garnished from SSDI before or after it goes into your bank account. BUT if other funds are in there it is possible to take the entire amount. Only protection is the make it obvious that it is SSDI and ONLY SSDI is to isolate those funds from anything else.

@Dana: They can NOT garnish your SSDI, but depending on your state laws could go after you in other ways for writing a bad check. These cash advance places differ from state to state and consumers have different protections. It is possible they could (if the account is used for anything in ADDITION to your sons SSDI) garnish that bank account. If you have deposited ANY funds into that account in the last 45 to 60 days, start a new account. Then have it deposited into the new account and DO NOT use that account other than to have the SSDI deposited and that is it!

Attempt to call and make payment arrangements with them. I would do it by certified mail (keeping a copy for yourself). Tell them in the letter that they can take the arrangements in payments or you will set aside x number of dollars per month and when the full amount is saved you will then pay them. If they refuse and you have to start to save up the funds, then at least when or if they file a court action (which they most likely will) you can explain your situation better to the judge and ask for relief from the judgment in the form of payment arrangement (that you had already tried to make with them before the filing). Courts will often agree to a payment plan and as long as one is in place and followed NO other collection on that account is allowed.

@Patrick: Having them direct depost is the best idea – it leaves a paper trail PROVING it is SSDI which is NOT garnishable either before or after it is paid. However state laws differ as to what it becomes after x number of months if it sits in there. So if you have less than 2x your monthly SSDI check in there at any given time it should be safe.

VA and SSDI are BOTH exempt from garnishment. Also you may want to think about filing for bankruptcy if the debt can not be paid off in less than 3 to 5 yrs on your current income. You are going to only dig your self a long rut that will continue if the old bills are going to keep pulling you down. Many states let you file alone, so that your spouse will not have to file with you. Check with your state laws to see if your state is one of them. Michigan I know will let people file without their spouse, while Ohio will not.

@Annette: Yes, SSDI can be garnished if you are in default on a Sallie Mae Federal loan. I received a letter a couple of days ago from the Department of the Treasury informing me that 15% of my SSDI check will be garnished to pay my Sallie Mae loan that is in default.

my mother has recently been a car accident that was her fault…she had passengers in her car and one of them broke his wrist…my mother has car insurance and owns no property or vehicle (now)…can her social security check be garnished to pay for any suits which are too much money for her present car insurance??

I have a friend who was still working at 68 years old, and has payments to the state for behind child support.

His SS payment was about $650, but the Friend of the Court is taking about $325 a month out. (This kid is now in his 30's and was not the guys kid in the first place but since they were married at the time of the kids birth his name went on the birth certificate.)

Anyhow, since then he had a severe case of pneumonia and was hospitalized for 3 months, and is no longer in any condition to work.

Who do I talk to to help this guy out?

TAKE THE MONEY OUT OF THE BANK AND CLOSE THE ACCOUNT. DON'T GIVE THEM AN INCH.. I HAVE A GIRL FRIEND THAT IS A MANAGER OF A BANK……SHE TOLD ME A HORROR STORY, ABOUT A 98 YR OLD WOMAN AND THE FRANCHISE TAX BOARD, THEY WERE SUPPOSEDLY WORKING WITH HER (YEAH RIGHT); THEY TOLD HER THEY WERE GOING TO ALLOW HER TO MAKE PAYMENTS, HOWEVER LAST MONTH THEY SWISHED, $14,9500.00 OUT OF HER ACCOUNT AND LEFT HER PENNILESS. SHE HAS NOTHING NOW……TAKE THE DAM MONEY OUT OF THE BANK AND PUT IT IN A HIDING PLACE IN THE HOUSE AND LEAVE IT THERE. THEY ARE HEARTLESS AND RUDE AND DECEPTIVE. JUST DO IT….DO NOT WAIT , IT COULD ALL BE GONE TOMORROW. WHY EVEN TAKE THE CHANCE….I AM HIDING MY MONEY NOW, JUST CAUSE, YOU NEVER KNOW WHAT COULD COME UP…!!!! ACT FAST AND DO NOT TELL ANYONE WHERE IT IS. OR ANYTHING…..THEY ARE ALL CROOKED AND RUDE ….THIS LADY WAS / IS 98, AND THAT WAS ALL SHE HAD….NO BILL MONEY, NO FOOD MONEY , THEY ARE HEARTLESS……ANN

SO CHANGE TO CHECKS AND KEEP THE MONEY AT HOME….THINK PEOPLE ….DO NOT ALLOW THESE PEOPLE TO STEAL YOUR MONEY….AND THEY WILL….BANKS ARE NOT SAFE ANYMORE. THEY ARE NOT……HIDE YOUR MONEY AT HOME…….ANN.