Why most Social Security Funds Can't Be Garnished
- Peter Schneider
- Feb 24
- 2 min read
Updated: Feb 27
Social Security funds provide a critical financial safety net for millions of Americans, particularly the elderly, disabled, and surviving family members. These funds are protected from garnishment under federal law, ensuring recipients can rely on them for essential living expenses. This document explores the reasons behind these protections, the legal framework, and the exceptions to the rule.
Legal Protections Against Garnishment
Social Security benefits are safeguarded by Section 207 of the Social Security Act. This provision states that none of the money paid or payable under the act "shall be subject to execution, levy, attachment, garnishment, or other legal process." The intent is to ensure that beneficiaries have access to their funds without interference, thus maintaining their financial stability and well-being.
Scope of Protection
The protection against garnishment applies to all types of Social Security benefits, including:
Retirement benefits
Disability benefits
Survivors' benefits
Supplemental Security Income (SSI)
These protections ensure that individuals receiving any form of Social Security support can fully benefit from their entitled payments. Have questions regarding pension garnishment exemptions? Click here to read our blog post on the subject.
Exceptions to the Rule
While Social Security benefits are generally protected, there are notable exceptions where garnishment is allowed. These exceptions typically involve debts owed to the government or family support obligations. Key exceptions include:
Federal Taxes: The Internal Revenue Service (IRS) can garnish Social Security benefits to collect unpaid federal taxes.
Child Support and Alimony: Social Security benefits can be garnished to enforce child support and alimony obligations.
Federal Student Loans: The federal government can garnish benefits to recover defaulted federal student loans.
Other Federal Debts: Benefits can be garnished to recover certain other federal debts, such as overpayments of benefits.
Bank Account Protections
In addition to the protections provided by the Social Security Act, there are further safeguards for Social Security funds deposited into bank accounts. Federal regulations require banks to automatically protect electronically deposited Social Security benefits from garnishment if the account holder does not consent to the garnishment. This protection covers two months worth of benefits, ensuring that recipients have access to essential funds even if their account is subject to garnishment for other types of debts. So, as long as your social security payments don't sit in a bank account (i.e. you spend it) for more than two months, you're protected.
Social Security funds are protected from garnishment to preserve the financial well-being of recipients who depend on these benefits for essential living expenses. While there are exceptions for certain types of debts, the overarching goal is to ensure that vulnerable individuals can maintain their financial security. Understanding these protections and exceptions is crucial for Social Security beneficiaries and their families to navigate financial challenges effectively.
The thoughts, opinions and musings of this blog are those of Peter Schneider, a consumer advocate attorney at Northwest Debt Resolution, LLC. They are just that, his thoughts, opinions and musings and should be treated as such. They are not legal advice. Do you have more questions? We would be happy to answer your questions:
Bankruptcy and debt questions:
Peter Schneider
206-800-6000
Robocalls and Telephone Consumer Protection Act questions:
Nathen Barton
206-800-6000
Fair Debt Collection Practices Act (FDCPA) questions:
Peter Schneider
206-800-6000
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