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Is Your Social Security Safe from Debt Collectors?
With several important exceptions, your social security check is safe or “exempt” from claims of creditors. For example, if you can no longer afford to make payments on your credit cards because of illness, job loss or other reason, the federal government will not allow what you owe to be deducted or “garnished” from your social security payment. The credit card company usually cannot collect from your bank once your payment is deposited. The money in your account, however, may not be automatically protected. You might need to tell or prove to the creditor or bank that your money is from social security and is exempt. Even if you owe money to the bank where your social security is deposited, your social security funds are usually still protected. One possible exception could occur if you were to save a substantial amount of your social security over time. As a practical matter, this seldom happens because if you were able to save a substantial amount of your social security, you should and would be paying your bills. Read more…
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