Garnishment is the process of taking money from your assets---for example, your paycheck---to pay a judgment. Certain funds like Social Security usually aren't subject to garnishment. However, in some cases, an agency legally has the right to take your Social Security funds to pay a debt.
General Rule
Typically, Social Security cannot be garnished by general non-government lenders and creditors. This includes Supplemental Security Income. Federal agencies, however, which also act as lenders and creditors, can garnish Social Security.
Social Security Protection
Social Security is protected from garnishment under Section 207 of the Social Security Act. This regulation states that Social Security money can't be garnished in most circumstances. The law basically states that Social Security money isn't subject to legal processes---that is, it typically can't be included in judgments, including bankruptcy.
Exceptions to Section 207
There are five exceptions to the protections to Social Security from Section 207. The first is garnishment for unpaid federal taxes. Up to 15 percent of monthly Social Security benefits qualify for garnishment for overdue tax debts as well. Social Security beneficiaries may elect to have a percentage of their benefits withheld to satisfy income tax liability for the current year. Any federal agency may garnish wages for non-tax debts. Courts may garnish Social Security for child support and alimony.
Laws Supporting Garnishment
Because each of the five exceptions to Social Security garnishment is slightly different, they all have separate laws supporting them. For instance, the Internal Revenue Code supports garnishment by the IRS, while the Debt Protection Act supports garnishment for non-tax debts. These laws are important because they establish the government's right to stop entitlements to those who still owe the government money in some way. They clearly show that agencies that garnish Social Security do not violate citizens' rights.
Continuation of Protection
Social Security fund protection continues even after the Social Security Administration distributes the money to you. However, you must show that the funds actually are from Social Security in some way, such as having a bank account solely for your Social Security benefits and using direct deposit.
Defense Against Garnishment
In the event that a creditor or lender aside from the government attempts to garnish your Social Security, you may use the exceptions to Section 207 as a defense in court. For example, if a credit card company sues you and asks the court to garnish your Social Security, your attorney can point out that the credit card company is not a government agency and therefore can't ask for Social Security garnishment. Typically, however, this will not happen, as most legitimate lenders and creditors are aware of the Section 207 stipulations.
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