Can a disabled person's pension be garnished for a repossession?

Answer 1

All SS, RRB, government, military and most private pensions are exempt from garnishment action for creditor debt. The debtor must be cautious in how the funds are placed in a bank account to avoid a levy of said account. The safest method is by direct deposit to the account and no commingling of account funds.

Answer 2

Generally now with a few exceptions, depending on where you live.

Here is the pecking order for garnishments:

1) Taxes

2) Criminal Fines (Usually related to restitution or fraud)

3) Child Support (limited amount can be taken - depends on the other two)

4) Punitive law suits

5) Creditor action from judgments

All those can be taken from your benefit check(s).

Some states may allow other garnishments but usually they follow Federal Laws.

If it is a simple debt like a credit card, your 401K and disability cannot be touched.

If you hurt or kill someone while you are driving drunk, you cannot escape having to pay, which is proper and just.

Most jurisdictions require an extra 10% of the garnishment to be withheld, just in case.

Example: you get garnered for $100. The courts force your bank to hold $110.00.

Note: if you or your spouse own anything of significant value generally those can be forcibly taken, sold, and proceeds applied to the garnisher's claim by a Conversion of Collateral. If your spouse is financially well-to-do, it is quite possible they can take THEIR money to satisfy YOUR problem, if you have a joint bank account or file tax returns jointly.

Answer 3

No.