Social Security payments go to elderly and disabled people, many of whom have no other sources of income. The government gives Social Security income special treatment, recognizing that many recipients depend on it to keep them fed and housed. As a result, the Social Security Act limits garnishment of Social Security income to only a few circumstances.
Garnishment
Creditors can use garnishment as a last resort measure in collecting debts. Creditors ask a judge for a court order for garnishment, and the sheriff then delivers the order to the debtor's employer, who must then send a percentage of the employee's wages to the creditor. Other sources of funds, such as bank accounts or self-employment income, can also be garnished. Garnishments can be one-time actions (lump sums) or repeating. Labor laws limit the amount that creditors can garnish; creditors cannot push weekly take-home pay below the poverty line and cannot garnish more than 25 percent of a person's income (50 percent for child support).
Social Security Act
Section 207 of the Social Security Act clearly states that "...none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law." This means that your Social Security cannot be garnished for things like credit card debt or on as a part of bankruptcy proceedings. However, Section 459 lays out a few cases where Social Security benefits can be garnished.
Federal Debts
Federal entities can garnish up to 15 percent of Social Security benefits. The IRS garnishes Social Security and other income much more often than other entities, due to the prevalence of tax debt. Federal entities can only garnish disposable income, which the Department of Labor defines as after tax income. Fresh Start Taxes notes that some Social Security Disability payments are exempt from garnishment; talk to a caseworker at the Social Security Administration to see if you may be exempt.
Alimony and Child Support
The only time any individual can garnish Social Security funds is when collecting child support or alimony. If a person succeeds in getting a court order to garnish Social Security from a former spouse or child's parent, the garnishment cannot push the Social Security recipient below the poverty line or exceed 50 percent of his total income. In the case of child support, a parent can garnish up to 60 percent if the Social Security recipient is not caring for another spouse or child, plus 5 percent for overdue child support.
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