Can us social security disability be garnished due to a motor vehicle accident for damages?
No. Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions: - to enforce child support oblications (Section 459 of the Act (45 U.S.C. 659)) - to collect unpaid Federal taxes (Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c))); - voluntary withholding to pay this year's Federal income tax liability (Section 3402 (P) of the Internal Revenue Code); - The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and - The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid. The Social Security Administration's responsibility for protecting benefits against legal process and assignment usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of the Act only as long as they are identifiable as Social Security benefits. This applies to money in a bank account where the only payments into the account are from direct deposit of Social Security benefits. NOTE: Supplemental Security Income payments cannot be levied or garnished.
1 person found this useful
No. SSD and SS benefits of all types are 100% exempt from creditor attachment. They are protected by federal and state exemptions/laws.
Answer . \nNo.
Answer . All SS benefits are exempt from judgment creditors under federal law.. They cannot be garnished nor can a bank account holding such funds be levied by a judgment… order.. A judgment creditor who knowingly attempts to seize exempted funds by means of a judgment order can be sued by the judgment debtor. Likewise any bank or financial institution that knowingly releases such protected funds can also be sued for damages incurred by the beneficiary and/or his or her family.
No. If a creditor other than the federal government tries to garnish your Social Security benefits, inform them that such an action violates Section 207 of the Social Security… Act (42 U.S.C. 407). Additional Information I only work as a paralegal at a judgment recovery firm which handles wage garnishments and bank account garnishments to collect money from judgments which have already been settled, I am not an attorney and I recommend you speak to one for legal advice. With that said, the basic answer is no they cannot. When pursuing for instance a bank account garnishment the law firm is required to send you a form notifying you of the garnishment action and included in this paperwork are some discovery forms where you will be asked a series of questions which they use to try and find other ways to collect such as other accounts you may have, etc. Included in this discovery is a form called "Claim of Exemption" where you have the option of saying that you are exempt from all or part of the garnishment because of reasons that you check off or write in. One of the options is social security benefits, which are specifically listed as exemptable income. Among various other things once you file this you say that they cannot take this money. Your money will remain frozen which is what happens when they move to garnish your account. The simple act of filing this though will prevent them from moving for a final judgment of garnishment which moves to actually have bank take the frozen money and send it to the firm. Now in my experience there are plenty bogus exemption claims, but when the exemption was for social security payments and the claim was valid, the case is usually dropped. occasionally usually on demand by the client the firm may move ahead with a hearing for an objection to your claim of exemption but if the claim is valid then even when defendants appear pro se (without an attorney) the exemption claim has ALWAYS been sustained by the judge and the objection overturned and soon after your money will no longer be frozen. Once again I advise you to speak to a licensed attorney for legal advice, this is just what I observe at our particular office as ONLY a paralegal. Good luck.
If money is owed to the federal government or there are schoolloans, or child support arrears, Social Security Disability can begarnished. It cannot be garnished for other rea…sons.
Generally not, except for Federal debts (Federal taxes) and child support or alimony.. Generally, Social Security benefits are exempt from execution, levy, attachment, garnis…hment, or other legal process, or from the operation of any bankruptcy or insolvency law. The exceptions are that benefits are subject:. (1) to the authority of the Secretary of the Treasury to make levies for the collection of delinquent Federal taxes and under certain circumstances delinquent child support payments; and(2) to garnishment or similar legal process brought by an individual to enforce a child support or alimony obligation.. Section 207 of the Social Security Act provides: "The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law.". However, section 6331 of the Internal Revenue Code of 1954 (26 U.S.C. 6331) which was enacted into law on August 16, 1954, after the enactment of section 207, gives the Secretary of the Treasury the right to levy or seize for collection of delinquent Federal taxes, property, rights to property, whether real or personal, tangible, or intangible and the right to make successive levies and seizures until the amount due, together with all expenses, is fully paid.
AS SOMEONE WHO USED TO WORK FOR THE DEPT OF EDUCATION. IT IS TRUE, BECAUSE THE DEPT OF EDUCATION IS A FEDERAL AGENCY AND SSI AND DISS IS CONSIDERED TO BE A FEDERAL APPROVED PR…OGRAM, THEY ARE ALLOWED TO INTERCEPT IT UP TO 25% BASED ON THE AMOUNT YOU GET MONTHLY. IF THIS DOES OCCUR, THE OFFSET (GARNISHMENT) WILL CONTINUE UNTIL THE FULL BALANCE OF THE LOAN IS PAID OFF OR YOU DIE! SO BEST THING TO DO IS PAY BEFORE THIS HAPPENS. - THEY ALLOW YOU A 65 DAY PERIOD FROM THE DAY THE LETTER IS MAILED OUT TO YOUR HOME ADDRESS, TO GET ON AN APPROVED ARRANGMENT FOR YOU LOAN.
The financial management service of the treasury dept. is threatening garnish my social security disability check if i don't pay them 110,000.00 which mostly interest. I have …a heart condition and unable to work, lost business and sold house in short sale and gave them 13,421.22 dollars and that is all i could pay because they were the 3rd mortgage and they excepted the money now they want threaten me with a garnishment is there anything i can do to stop this.
No, they are protected from creditor judgments under federalstatutes. However, all Social Security benefits awarded to a non custodialparent are subject to garnishment for ch…ild support obligations.
Disability payments of any type are typically excluded from garnishments regarding monies owed for merchandise (cars, trucks, motorcycles, mo-peds, etc.). I don't know about C…hild Support garnishments, but I think disability money is excluded on this too.
yes, in a way it can be garnished. my brother wrote some bad checks went to court over it and they garnished his check after it hit his bank account. the bank and the court ha…d it set up to where the amount would be withdrawn shortly after the deposit was made. ....NO, only if you fail to answer a court hearing and get a judgement against you, THEN, fail to invoke your exemption status ! Only in the cases of back taxes and back child support can Social Security be taken from your account. That is, unless you fail to claim your exemption, then the bank will forward it on ..gotta get off your a$$ to the the above answer.
If the debt relates to tax arrearage and/or child support then yes, SSD benefits can be garnished via a court order. SSD cannot be garnished for creditor debt.
Yes, but only the federal government can garnish your Social Security check, and only for limited purposes, such as payment of child support, alimony, delinquent taxes, and de…bt to other federal agencies. Federal law prohibits creditors from garnishing social benefit checks, such as Social Security, unemployment, workers' compensation, SSI, VA benefits, and so on. The problem is that unethical creditors sometimes freeze and levy a bank account after the benefit is deposited and beyond Social Security's protection. Not only will the creditors suck money from your account, but the bank may charge penalties and fees for the garnishment and any checks that bounce. If this happens, you'll need to file a "waiver of garnishment" and get a court order to stop the action and get your money back. You can also notify the creditor that the income is from Social Security and protected from garnishment under federal law, and ask the bank to unfreeze your account (all in writing). Contact your nearest Legal Aid Society for assistance. If you can't afford to pay, they will assist you at no cost.
SS benefits are exempt from garnishment for debt with the exception of child support and in some instances tax arrearages. This does not mean the judgment seeker will not at…tempt pursue garnishment procedures via a civil suit. It is the responsibility of the debtor to notify the court regarding monies and/or assets that are exempted from the judgment holder. This is done when/if the debtor receives a final notice of judgment awarded to the plaintiff through a civil suit.
It depends on the type of disability check.. but typically no..