Wage garnishment is a procedure allowing a creditor to take a portion of a person's disposable income -- which is the balance remaining after taxes -- to pay a delinquent debt. Banks, businesses and other creditors may only garnish individuals' wages in response to judgments from authorized courts. Law mandates only certain types of wages may be garnished.
Background
Laws in all 50 states mandate that creditors are not allowed to garnish any money, funds or cash from individuals' Social Security checks. The reason for this is due to the nature of Social Security payments: individuals receive these funds due to old age or disability. Creditors must comply with the various state laws against Social Security wage garnishment or their debtors have the right to bring lawsuits against them.
Exceptions
Although state laws prohibit creditors from garnishing Social Security payments under normal circumstances, as of February 2011, federal law provided exceptions in which creditors can garnish these checks, according to the Social Security Administration. Creditors can garnish Social Security funds to pay child support or alimony, unpaid federal taxes, debts to a federal agency. Businesses or agencies may withhold garnished funds from persons' Social Security checks, or they may debit the garnished amounts from individuals' bank accounts.
Considerations
Despite the illegality of the practice, some creditors may still attempt to garnish individuals' Social Security benefits. Los Angeles attorney Justin Harelik recommended in a Bankrate article that individuals inform their banks that funds in their accounts are from Social Security payments and order the institutions not to release the money to creditors. Additionally, individuals should call their local Social Security Administration office and request the organization to send their payments in check form directly to their homes, which eliminates any possibility of unauthorized garnishment.
Warning
If creditors illegally acquire funds from individuals' Social Security checks, it can be very difficult for persons to recover the money. To recover funds from unauthorized garnishments, individuals must hire lawyers and notify courts and sheriff's offices. However, different states have different rules on Social Security garnishment recovery procedures, says Harelik. Individuals should contact their state government offices to find out the local procedure for recovering illegally garnished Social Security money.
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