Can Debt Collectors Garnish Social Security Benefits?

Major Advantages of Debt Settlement Like Paying Less Than 50% When a debt has been passed to a collection agency, it is not uncommon for that agency to make threats in order to scare the debtor in making payments. These threats can range from annoyances such as phone calls at all hours of the day, to things that are more menacing such as physically showing up at one’s home. It is also common to hear threats of legal action and wage garnishment while they are attempting to collect on the money owed. It is possible for a collection agency to win a judgment against a person in debt and collect money directly from their paycheck. However, the issue becomes more complex if the only source of income for the debtor is social security. For bills such as credit cards or car payments that are in arrears, social security income can not be garnished directly. It is a protected source of income. There is a way, though, for the collection agency to actually have money taken directly from a person’s bank account. This means if the social security check is placed into a bank account, the money in that account can be seized and used towards repayment of the debt. This can not happen if the bank account is used solely for social security income. If only the social security checks are deposited, then the account is protected as well. The federal government is able to garnish social security income for itself under certain conditions. If money is owed to the IRS or child support has not been paid, then the checks will be garnished pending a hearing. For private debts, social security checks are safe from direct garnishment. For monies that are owed to the government, they are not.