Social Security: Can Debt Collectors Garnish Your SSI Payments?

Social Security: Can Debt Collectors Garnish Your SSI Payments?.If you’re a recipient of Social Security benefits, it’s important to be aware that some of your payments are subject to garnishment rules that are similar to those applied to other sources of income.

Social Security: Can Debt Collectors Garnish Your SSI Payments?

This implies that your benefits can be withheld to enforce legal obligations such as child support, alimony, or restitution. However, there’s an exception to this rule when it comes to Supplemental Security Income (SSI) payments.

Exception for SSI Payments

The Supplemental Security Income (SSI) program differs from regular Social Security payments in terms of garnishment. According to the Social Security Administration, SSI payments cannot be garnished or levied. This unique protection holds true even if you owe federal income taxes that remain unpaid.

Garnishment Rules for Different Social Security Benefits

While Social Security and Social Security Disability Insurance (SSDI) benefits can sometimes be garnished to address specific government debts, such as federal student loans, back taxes, and spousal or child support, SSI benefits remain shielded from garnishment, regardless of the type of government debt or obligation.

Understanding the SSI Program

The Supplemental Security Income (SSI) program, overseen by the Social Security Administration, offers monthly benefits to individuals with disabilities, blindness, and limited financial resources. This program extends its benefits to elderly individuals aged 65 and above, even if they do not meet the disability criteria. Importantly, SSI benefits can be accessible to those who already receive Social Security Disability Insurance or retirement benefits.

Garnishment Distinctions

While SSI benefits are protected from garnishment, the same does not hold true for other categories of Social Security payments. As previously highlighted by GOBankingRates, the Social Security Administration has the authority to garnish ongoing monthly benefits. It’s important to note that challenging a garnishment via the Social Security Administration is not an option; instead, individuals must engage legal representation or an attorney within the jurisdiction where the garnishment order was issued.

Treasury Department Involvement and Repayment Process

Apart from garnishments related to child support, alimony, or restitution, the U.S. Department of the Treasury can also withhold Social Security benefits to satisfy federal tax debts that are overdue. The Treasury Department employs methods such as the Notice of Levy or the Federal Payment Levy Program to recover these outstanding federal taxes. This allows the department to withhold a maximum of 15% from your monthly Social Security benefits until the debt is settled.

Protection of SSI Benefits

For SSI beneficiaries, the worry of garnishments doesn’t apply. In the event that someone attempts to garnish your SSI payments, the Consumer Finance Protection Bureau (CFPB) advises promptly notifying the relevant court, banking institution, and the entity engaged in the garnishment through written communication. Moreover, seeking legal assistance from an attorney is strongly recommended.

Accessing Legal Support

Depending on your income level, you may qualify for free legal assistance. The Center for Elder Rights Advocacy can connect you with local agencies that offer free legal aid to eligible seniors. To reach out to the Center for Elder Rights Advocacy, you can contact them at 866-949-2372.