Can Social shield Payments Be Garnished?

October 31st, 2008 | Category: Reverse Mortgage

With so many society falling behind on their bill payments, public who receive Social defense may be wondering whether their creditors will come after them by garnishing their wages. The good news is that Social shield benefits are protected from being seized by most creditors such as mortgage lenders, credit card companies, and auto lenders. The poor news is that whether you owe the U.S. government money, your Social shield payments can be garnished. Money can additionally be seized whether you owe child support or alimony.

Tax debt can be collected by Uncle Sam by garnishing up to 15% of your monthly Social protection benefit. That can occur until your tax debt is paid in full. However, that doesn’t usually happen unless you’ve already been notified about paying back taxes and there’s a court order instructing that benefits should be garnished. “We have to be notified that there’s an

appropriate levy,” Jane Zanca, a spokeswoman for the Social safety measure Administration told Newsday.

However, the AARP Bulletin reported recently that 20 financial institutions garnished thousands of credit card accounts with federal benefits during a 12-month period, even though it’s illegal in most cases. The editorial featured a 61-year-old Social protection recipient who had his bank history frozen considering creditors had a court order to garnish his funds. considering Social defense is direct deposited, it’s more more vulnerable to being frozen in a bank explanation.

If you do owe back taxes, it’s vital to contact the Internal Revenue Service to set up a payment plan to avoid having your benefits garnished. And whether you think you’re being unfairly targeted by a creditor who is going after your Social protection benefits, it’s urgent to get legal help.

Orginal post by Francine Huff

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