Yes, your Social Security benefits can be garnished in some situations. The government puts restrictions on garnishment and does not allow the process for most consumer debts, but you can still face garnishment in some circumstances.
A Social Security Disability lawyer can tell you more about garnishment and how it could impact the benefits you receive from the Social Security Administration (SSA). A lawyer can also assist with your benefits application or an appeal if the SSA denies your initial request for benefits.
Your Social Security Can Be Garnished
Legally, your Social Security Benefits can be garnished or levied, though the government does not allow this process for the majority of commercial debt. Garnishment is possible in situations involving:
Alimony, Child Support, or Restitution
The government can garnish your Social Security Disability benefits in order to cover child support or alimony payments. You may also face a court order to pay restitution after some legal cases.
Unpaid Federal Taxes
You can face garnishment if you have unpaid or overdue Federal tax debts. In this situation, the Internal Revenue Service (IRS) can garnish up to 15% of each of your Social Security payments until you’ve completely repaid the debt.
Federal Student Loans
The government has the right to garnish your Social Security benefits in order to repay federal student loans that you took out for your education. However, you should not face garnishment for private loans.
Overpaid Government Benefits
Sometimes, the government will overpay you when handling benefits. Upon noticing this overpayment, the SSA will notify you and expect you to repay the money to address the mistake.
If you do not properly pay back the benefits, the government can withhold or garnish your benefits until it gets back the funds.
So, your Social Security can be garnished in several situations.
For a free legal consultation, call (800) 562-9830
Limitations on Social Security Garnishment
Not every debt collector can garnish your Social Security benefits. Generally, your benefits are protected from garnishment associated with:
- Car payments
- Credit card debt
- Medical debt
- Retirement accounts
However, the specifics about allowable garnishments can vary. If you have questions about the debts that could affect your benefits, you should reach out to an attorney for help and answers about your unique situation.
How Much of Your Benefits Can Be Garnished?
Agencies can garnish up to 15% of your Social Security Disability benefits as long as they leave you with at least $750 a month. When the SSA set up this system, it intended to leave recipients with enough income to pay for daily expenses.
However, these limitations were set up in 1996. Inflation and the cost of living have risen significantly since then, increasing the financial strain placed on individuals who have their benefits garnished.
What Happens if an Agency Tries to Garnish Your Benefits?
If an agency plans to garnish your benefits, you will receive a notification at the beginning of the process. Then, your bank will assess your account and protect some of your directly deposited benefits.
You get to maintain two months’ worth of your benefits. The garnishment process cannot seize or freeze these benefits.
Note that, in most cases, garnishment will come directly out of your Social Security benefits direct deposit payment. You can reach out to a team of legal professionals to learn more about garnishment and how it could impact your monthly benefits.
Can You Stop the Garnishment Process?
Generally, the SSA will not stop a legally ordered garnishment. However, you may have options like hardship programs, consolidation of debt, or debt settlement that can help you reduce the pressure on your finances and benefits.
The SSA does not directly offer any of these options. Instead, you’d have to work with the creditor or debt collection agency handling your debts in order to see if they have options that can work in your situation.
Some of these agencies offer lower monthly payments, lower interest rates, or even the suspension of interest if you reach out and explain the realities of your financial situation. You may even need to consider bankruptcy in some cases.
Talk to Us to Learn More About Social Security Benefits
Your Social Security can be garnished. Money could come out of your benefits to cover things like alimony, child support, unpaid federal taxes, federal student loans, and overpaid benefits from the government. In fact, you could lose up to 15% of your benefits.
You can learn more about the garnishment process and options to handle it by reaching out to a skilled attorney from our team at Marc Whitehead & Associates. We understand Social Security Disability benefits and have over 120 years of combined experience assisting clients like you.
We can explain how you should file for benefits or what you need to do if the SSA denies your initial application. We’re ready to assist with any challenges you face, so reach out now and get the help you deserve.
Call or text (800) 562-9830 or complete a Free Case Evaluation form
