Will Creditors Take My Social Security Disability Benefits Away?
In the United States, many people struggle with a debt problem. An estimated 1 in 3 adults with a credit history are so far behind on some of their debt payments that their account has been put “in collections,” according to recent research.
If you find yourself in this situation, and you are retired, you may be wondering how your debt problems will affect your Social Security. This is an important question for the more than 64 million people who collect Social Security benefits.
Our team at the Law Offices of Terri D. Mason can help you manage this problem. We are Baltimore-based Social Security Disability Attorneys who work with a wide range of clients who are being taken advantage of or facing unfair garnishment due to their debt problems.
Will Creditors Take My Social Security Disability Benefits Away?
The good news is your social security benefits are safe from creditors and debt collectors in most cases. They only reason your Social Security may be in question is if you become delinquent on your federal income taxes, federal student loans or child support or spousal support payments.
In fact, in all other cases, if a debt collector threatens to take away your social security benefits, they may be violating the Fair Debt Collection Practices Act. If your feel like your rights have been violated under this act, you should seek out the services of social security disability lawyers.
This is true even if you are sued and lose that case. In addition to your social security benefits, the following benefits are protected from garnishment and bank levies under federal law:
- Social Security benefits
- Supplemental Social Security Income
- Veterans’ benefits
- Federal Employee Retirement System
- Civil Service Retirement System
- Federal Railroad Retirement, Unemployment, and Sickness Benefits
A SS disability lawyer will be able to help determine if your rights have been violated under the Fair Debt Collection Practices Act.
How to Protect Your Social Security Income
While your Social Security Income should be safe from garnishment even after it has been deposited into your bank account, that may become difficult if the Court cannot clearly identify which funds are exempt and non-exempt funds. You need to be sure it is clear where each deposit into your bank account is coming from.
For you to be able to keep your Social Security, the Court must be able to determine from your bank records and statements which money is Social Security income. If they cannot, then they may ultimately decide that none of the money is exempt.
The good news is, if your Social Security is direct deposited each month in the same way from the Social Security Administration, it will show up the same way at the same time from the U.S. Treasury and that will be a clear delineation for the Court and any creditors which money is exempt from garnishment.
When to Contact an Attorney
You should contact a Social Security Disability lawyer if you feel like your Social Security is being improperly garnished. We can help if you feel like:
- You don’t owe the debt
- The legal fees will exceed the amount of the debt
- The creditor is taking too much
- You want to work out other payment arrangements
- Your employer is threatening to fire you because of the garnishment
- The creditor is trying to get around the wage exemption by garnishing a bank account.
Should You Declare Bankruptcy
When you work with a social security disability attorney to help you deal with your debt or creditors, he or she will also be able to advise you on whether or not bankruptcy can help you get back on your feet.
The good news is, if you are on Social Security, your benefits are exempt and therefore protected in bankruptcy.
Contact the Law Offices of Terri D. Mason
If you need help managing your debt or creditors or if you feel like your Social Security is being unfairly garnished or threatened, the Law Offices of Terri D. Mason — a Baltimore SS disability lawyer — can help you manage your case. We work with a wide range of clients to help ensure their rights and money are protected.