Federal law prohibits the garnishing of Social Security benefits for most types of debt. If you are sued, or threatened with a lawsuit, by a creditor, protect your Social Security money by keeping it separate from other sources of income that are subject to garnishment.
Social Security Retirement Benefits
Your Social Security retirement benefits can't be garnished or levied from your bank account for most types of debt, including credit card and medical debt. However, a creditor can garnish your Social Security for tax debt, debts owed to federal agencies (such as defaulted federal student loans), or child support payments.
Social Security Disability Insurance
Recipients of Social Security Disability Insurance have similar protections to recipients of Social Security retirement. Your monthly benefit is safe from garnishment or seizure providing that your creditor is not collecting federal, tax, or child support debt.
Supplemental Security Income
Supplemental Security Income provides income to elderly and disabled people who have little income. SSI benefits cannot be garnished for any reason unless a recipient received an overpayment of benefits. In such cases, the Social Security Administration can garnish the recipient's benefits each month to recoup the overpayment.
Protecting Funds
Some people experience difficulty protecting their Social Security money from garnishment because it is commingled with other funds in a checking or savings account. To prevent problems, keep your Social Security money in a separate account or request to have your money deposited onto a Direct Express debit card.
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