Full question:
My mother has her social security benefits deposited to her bank account each month. Can that money be taken if a judgement is issued for a debt (Visa account)? She has no assets, is 88 years old and had a stroke.
- Category: Social Security
- Date:
- State: Washington
Answer:
Social security benefits are generally protected from garnishment under Section 207 of the Social Security Act (42 U.S.C. 407). However, there are five exceptions where benefits can be garnished:
- Child support and alimony obligations (42 U.S.C. 659);
- Unpaid federal taxes (26 U.S.C. 6334 (c));
- Federal income tax liabilities, if the beneficiary elects to have a percentage withheld (26 U.S.C. 3402 (P));
- Non-tax debts owed to federal agencies (Public Law 104-134); and
- Overdue federal tax debts, which can be collected by levying up to fifteen percent of monthly payments (Public Law 105-34).
Once social security benefits are deposited, they remain protected as long as they can be identified as such in the bank account. It’s advisable to keep a separate account for these deposits. If a creditor attempts to garnish these benefits, inform them that, unless one of the exceptions applies, the benefits cannot be garnished. You may also want to notify your bank and seek legal assistance if necessary.
Note: Supplemental Security Income (SSI) payments cannot be garnished.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.