Unfortunately, those rules aren’t working like the SSA intended for some people. Sure, they keep creditors from garnishing recipients’ benefits, but the rules don’t stop them from trying. And often it was the act of trying that ended up causing problems.
Attempts to Garnish Disability Benefits Cause Delays
Creditors have discovered that it’s in their best interest to ignore the rules and try to garnish people’s Social Security benefits anyway. While they knew they wouldn’t succeed at getting the money, they were often able to prevent people from receiving their benefits because banks will freeze accounts as things are sorted out. The result is that countless Americans who rely on their Social Security checks to survive aren’t able to access that money – sometimes for months.
These are the types of companies that send catalogues of expensive products to people who clearly can’t afford them or credit card offers to people shouldn’t be able to qualify. As a Social Security lawyer who has lots of disabled and elderly clients, I’ve seen this tactic used countless times because creditors think they can bully people into paying.
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The SSA Steps In
It took a while, but the SSA has finally stepped in and put a stop to this practice. How? By creating new rules that specifically prevent holds from being placed on accounts created to receive Social Security Disability benefits. Now the only way these accounts can be garnished or frozen is if the recipient owes money to the federal government or for child support.
If you have an issue with a creditor, don’t be pressured into making the wrong decision for your financial future. Seek the help of a lawyer to ensure your benefits are protected. Also, stay up to date on other changes to Social Security law by checking our blog for a new post every week. And if you want an in-depth analysis on the whole process, download our free Social Security e-Book.
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