Are Social Security Payments Attachable Assets in a Lawsuit?

Once you reach the age where you become eligible for Social Security benefits, you start receiving a monthly check that will help supplement your income. If you're involved in the lawsuit and a judgment goes against you, the Social Security benefits that you receive typically won't be compromised by your creditors.

Typical Creditors

If you're sued in a civil lawsuit by a creditor, the money from your Social Security benefits shouldn't be subject to attachment. For example, if you don't pay your credit card bill and the credit card company sues you and gets a judgment against you, your Social Security benefits can't be touched. Section 207 of the Social Security Act makes it impossible for these types of creditors to access your Social Security benefits.

Exceptions

Although traditional creditors can't access your Social Security benefits due to a judgment, certain exceptions apply. For example, if you owe child support or alimony payments, the Social Security Administration garnishes your wages for this. Your Social Security benefits can also be garnished if you have to pay restitution to a victim. If you owe unpaid federal taxes, money from your Social Security benefits can also be garnished. Money can also be taken from your Social Security benefits to pay other government agencies to which you owe money.

Notifying Creditors

If you have a judgment placed against you by a civil court, a creditor may try to levy your bank account. In this situation, it's your responsibility to notify the court that the money in your account comes from Social Security. In most areas, you simply have to fill out a form that notifies the court that you have exempt income. Once you complete the necessary paperwork, the court notifies your creditors that they can't take this money out of your account.

United States Treasury Rule

In May 2011, a new rule emerged that made it more difficult for creditors to garnish money from your account even if you don't complete the appropriate paperwork with the court. The United States Treasury rule requires banks to look at their customers' accounts to determine if they have any protected funds in them. When creditors try to garnish accounts, the bank must look back 60 days to see if any Social Security money or any other protective income was deposited into the account.