Supplemental Security Income (SSI) is a benefits program for people who have very little income, few assets, and are either disabled or elderly. If you receive SSI, you are subject to the same credit card and debt laws as anyone else.
Court Judgments
Creditors cannot garnish or seize SSI benefits, however. If are sued and your creditor wins a judgment against you, you should inform both the creditor and the court that your income is from SSI. By federal law, your creditor cannot garnish or levy your SSI payment, nor can it seize SSI income from your bank account, according to the Social Security Administration.
Collections Efforts
There is no law that prevents a creditor or collection agency from attempting to collect a debt from you, even if your only source of income is SSI. Under the Fair Debt Collection Practices Act you can write a letter to a third-party collection agency and request that they stop contacting you. Under the law, they may only contact you one more time to inform you if they are planning further action, such as a lawsuit, according to the Federal Trade Commission.
Credit Reporting
Being an SSI recipient does not protect you against creditors placing negative information on your credit report. Negative information about credit card debt can remain on your credit reports for seven years, according to Experian.
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