Skip to main content

CAN YOU COLLECT SOCIAL SECURITY IN SPITE OF PAST DUE DEBTS?

So you have past due debts.  Can you still collect Social Security disability benefits?  Can your creditors seize your benefits to satisfy loans or debts that are past due?

In most cases, you can collect Social Security benefits and past due debts or defaulted loans will not interfere.

For example, if you owe past due credit card debt, the card company cannot seize your Social Security benefits to pay the debt.  If you defaulted on a bank or car loan, your Social Security cannot be seized to pay those debts. The same is true for most other private debts.  Social Security assets are protected. However, there are exceptions.

I do want to talk about 2 things that are important footnotes to this topic.  One, what type of debt is NOT protected?  Two, what can you do to further protect your Social Security benefits from debtors?

1.  WHAT TYPES OF DEBTS ARE NOT PROTECTED?

Some types of debt are not protected and can result in seizure of Social Security benefits.

Federal Tax Debt.  The IRS may garnish or seize Social Security benefits for past due federal tax.

Government Loans.  Certain loans made or guaranteed by the US government are not exempt.  Social Security benefits may be seized to pay past due student loans and certain other federally guaranteed loans.

Child Support and Alimony.  These are other examples of debt that can subject you to seizure of Social Security assets, subject to a court order. 

Criminal Restitution.  If you are convicted of a crime and a court orders you to pay restitution to the victim, Social Security assets can be used.

2.  HOW CAN YOU FURTHER PROTECT YOUR BENEFITS?

Since only Social Security benefits are exempt from garnishment or seizure for debts, it is important that you can prove that your money came from Social Security.  The best way to do this is to have one dedicated account into which Social Security benefits--and only Social Security benefits--are deposited.

______________________

Disclaimer:  This is not intended as legal advice.  I am in no way acting as your lawyer or legal representative.  If you have specific legal concerns or questions, contact an attorney who is licensed to practice law in your state or jurisdiction. Do not depend on this or any internet posting to make important decisions.

 
Labels:

Comments

Post a Comment

Popular posts from this blog

MOST IMPORTANT FACTORS IN A SOCIAL SECURITY DISABILITY CASE

What are the top 3 most important factors in a Social Security disability case? 1.  Medical Evidence. 2.  Medical Evidence 3.  Medical Evidence 4-10     Medical Evidence Federal regulations set the eligibility requirements for Social Security disability (SSDI) benefits.  A claimant must meet these strict legal requirements More than anything else, the claimant's medical evidence will determine the outcome of the claim or appeal.  Without strong objective medical evidence Social Security cannot legally pay you a benefit. Objective Medical Evidence means the result of medical examinations, laboratory tests or imaging studies (X-rays, PT scans, MRI or CT scans). This type of evidence can only be obtained by going to your doctor. There's an old adage that says truthfully:  "The path to Social Security disability benefits runs straight through your doctor's office."  Being approved for an SSDI benefit requires objective medical proof. ...
Post a Comment
Read more

SOCIAL SECRITY DISABILITY: THE DECISION WRITING PROCESS

  By Charles W. Forsythe - The Forsythe Firm in Huntsville An Administrative Law Judge (ALJ) has made a decision on your Social Security disability appeal hearing. The decision must now be sent to to a process called "Decision Writing" - where an attorney or paralegal will draft the formal binding decision, explaining the judge's legal rationale for the decision and explaining the mandatory 5-Step decision making process. The decision writing process translates a judge's ruling into a formal, legally binding document. It is a vital but time-consuming phase that ensures all medical evidence and vocational factors align with the law. A typical written decision will be 10 to 20 pages, thus very detailed.  It takes time to write one. There are many decisions ahead of yours and usually they are written in the order received. The step-by-step process breaks down as follows: The Judge’s Ruling & Instructions:  Following your hearing, the Administrative Law Judge (ALJ) r...
Post a Comment
Read more

UNDERSTANDING THE 5-STEP SOCIAL SECURITY DISABILITY PROCESS

Receiving Social Security disability payments depend on one thing:  Proving that you are not able to work. The one and only thing that SSDI pays for is the physical and/or mental inability to work for a period of at least 12 months.  Who decides if you are able to work?  The Social Security Administration (SSA) will decide.--according to their own strict rules and regulations. In reaching that important decision, are you disabled or not, Social Security must use a 5-step examination process.  It's important to understand these 5 sequential steps. STEP 1:  The work Test .  Is the claimant now engaged in Substantial Gainful Activity (SGA)?  If yes, the claim is denied at Step 1.  They look no further.  You cannot be eligible for SSDI benefits if you are working at SGA, regardles of your medical condition.  (In 2026 you are working at SGA if you earn at least $1,690 per month from work or self-employment). STEP 2.  The Medical Requirem...
Post a Comment
Read more