Answer:
Section 207 of the Social Security Act (42 U.S.C. 407) protects social security benefits from garnishment, assignment, or levy. However, there are five exceptions:
- Section 459 of the Act (42 U.S.C. 659) permits garnishment for child support and alimony obligations.
- Section 6334(c) of the Internal Revenue Code (26 U.S.C. 6334(c)) allows levies for unpaid federal taxes.
- Section 3402(P) of the Internal Revenue Code allows beneficiaries to choose to have a portion of their benefits withheld for federal income tax liabilities.
- The Debt Collection Act of 1996 (Public Law 104-134) permits withholding benefits to pay non-tax debts owed to federal agencies.
- The Taxpayer Relief Act of 1997 (Public Law 105-34) allows the IRS to collect overdue federal tax debts by levying up to fifteen percent of monthly payments.
Once social security benefits are paid, they remain protected under Section 207 as long as they can be identified as social security funds through standard banking practices. For instance, having a dedicated bank account for SSI deposits can help. If a creditor attempts to garnish your social security check, inform them that benefits cannot be garnished unless one of these exceptions applies. It's also advisable to notify your financial institution and seek legal assistance if necessary. Note that Supplemental Security Income payments cannot be garnished or levied.
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.