Can My Creditors Attach My Social Security Benefits?

Living on a fixed income can be difficult, especially when transitioning from a higher income to a lower income.  You have less money but the bills from when you had more money and are being threatened by your creditors.  How safe are your benefits from your creditors?

Protection from Garnishment

In general, your social security benefits regardless of whether you are receiving retirement, survivors,  or disability cannot be assigned, levied, or garnished except for the following situations:

• Social security benefits can be garnished to pay child support or alimony obligations
• The IRS is allowed to garnish benefits to pay unpaid federal taxes, the IRS can levy up to 15% per month until the debt is paid.
• Social security recipients can allot a portion of their benefits to the IRS to pay federal taxes due for the current year.

• The Debt collection act of 1996 allows benefits to be withheld and paid to another federal agency to which the beneficiary owes money.

Protecting Benefits once they are paid

The Social Security Administrations responsibility for protecting your benefits from garnishment, assignment, or  levy ends once the benefits are paid.  Social Security is still required to protect your benefits if they can be identified as Social Security benefits.  This applies to funds that are direct deposited into a bank account.  The most effective method of protecting your benefits once they go into your bank is to keep your Social Security funds separate from any other income you may receive. This can be accomplished by having more than one bank account.  It may sound difficult to manage but with online banking, it is not as difficult as it may sound, and it is certainly possible to have more than one account at the same bank.

Supplemental Security Income Benefits (SSI)

SSI benefits are different that Social Security benefits.  They are not subject to levy or garnishment of any kind.

Do You Need a Lawyer?

Any action for garnishment or attachment of your benefits is not appealable to Social Security.  You would have to take action with the court or federal agency that is seeking the attachment or garnishment.  This would mean seeking an attorney experienced with child support or alimony if that is the reason for the garnishment, a tax attorney, or other competent attorney.