How to Prevent Social Security Benefit Garnishment

Federal statute exempts Social Security benefits from garnishment of any kind by private creditors, such as credit card companies and other lendors of unsecured debt. However, your Social Security benefits may be inadvertently garnished, if a creditor obtains a judgment against you in a court of law. Here's how to avoid Social Security garnishment before it even begins, and what to do if your benefits have been garnished.

Instructions

1

Know the law. Federal statute exempts Social Security benefits from garnishment by private creditors, so your check cannot be garnished. The government is the only entity who can garnish your benefits, and they may do so if you are delinquent in federal taxes, a student loan, alimony or child support, or a federal business grant. A private lendor cannot touch your Social Security benefits in any way, even if you owe a legitimate debt--but this can still accidentally happen, if you don't pay attention--and it usually happens when you have your Social Security check directly deposited into a "co-mingled" account that contains non-Social Security monies.

2

Know how Social Security garnishment occurs by a credit card company. If a private creditor has a judgment against you, they may resort to getting a court order to "freeze" the assets in your bank account. Upon receipt of such an order, a bank must comply. By law, you are required to receive a copy of this order, which will include instructions to inform the court if the bank account that the creditor wishes to garnish contains money from Social Security. If you don't receive a copy of the order or if you ignore it, or if the bank receives the order before you, you may find your assets frozen.

3

Immediately contact the court, the creditor and your bank to inform them that your bank account contains Social Security benefits. You will probably be required to submit proof of your direct deposits. Alternately, if you know that a creditor judgment is headed your way, plan in advance (see Step 4).

4

Have your Social Security check mailed to you directly rather than direct-deposited. You can cash the check and use money orders to pay for your bills, or you can open another account strictly reserved for Social Security monies. Account garnishment is tricky, because by law, creditors may be permitted to garnish a bank account with co-mingled moneys (for example, your spouse is still working and deposits his or her earnings into the frozen account), as long as your Social Security monies are exempt. The number for the Social Security Administration is 1-800-772-1213. According to SSA.gov, you can speak to a representative Monday through Friday from 7 a.m. to 7 p.m. (the site fails to note to which time zone this applies, so you may want to call during regular business hours in your state).