If you get Social Security or SSI (Supplemental Security Income), you are likely to have a stable income. If you owe creditors medical bills, credit cards or personal loans, you may be worried that the creditor will adjust your social security or invalidity pension. Can social security disability be garnished for medical bills?
For most types of debt, including credit cards, medical bills and personal loans, social security cannot be attributed to debt repayment. If you owe money to the creditor, the creditor can go to court and receive an order to withdraw money from your bank account. If the Social Security check is deposited directly with the bank, the bank is required to protect Social Security benefits against seizure. When a creditor attempts to freeze the debtor’s bank account, the bank must check the previous two months of the debtor’s transaction to determine whether the debtor has received social security benefits by direct deposit. For example, if you receive $ 1,500 a month for social security, the bank must allow the use of up to $ 3,000 in your account.
Exceptions
The federal government can pay Social Security invalidity allowance to recover money owed to it, such as overdue taxes or outstanding student loans that have been guaranteed by the federal government. In addition, SSDI may be used to recover current or ongoing maintenance obligations. (Read more about disability and child benefits.) If you receive SSI, you cannot even pay child benefit, student loan or unpaid taxes.
Does this mean that your social security is protected against any creditor?
You must first determine what benefits you get to know if they may be subject to attachment by the federal government or for certain debts. Generally, benefits are paid as retirement income, SSDI or SSI. SSDI benefits are provided as an income supplement in the event of a disability limiting your ability to work. SSDI income is not affected by your income. On the other hand, SSI is to provide additional income to meet the basic needs of people with disabilities, age or the blind.
Circumstances that may give rise to social security benefits
Although the Social Security check is generally protected against seizure, the following may lead to the seizure of Social Security benefits:
- Enforcement of child support or child support: These must be court orders, which may include late payment, interest, healthcare, attorney fees and others. These orders are issued to ensure that parents or former spouses fulfill their obligations towards their children or former spouses as ordered by the court.
- Compensation to the victim for a civil sentence: This is to ensure that victims who suffer damage as a result of the recipient’s negligence receive the compensation they are entitled to. An example would be a settlement due after an accident, such as a car accident. Submission of social security benefits may charge for overdue payments for property damage, loss of income, medical bills and more.
Bottom line
If you’re in danger of getting Social Security or Retirement Income and you don’t seem to end up in the movie It’s a Wonderful Life, get legal help. The American Bar Association provides links to free and cheap lawyers who can advise you.
