IS YOUR SOCIAL SECURITY CHECK SUBJECT TO LIEN OR GARNISHMENT?

Federal regulations generally do not permit creditors to garnish or place liens on Social Security payments. These payments are protected by Section 207 of the Social Security Act and by such regulations as 20 CFR 404.970.  There are 3 exceptions:

• If you owe federal income tax, the federal government is allowed to pay itself out of your SSDI payments (but not SSI payments).
• If you are delinquent on federally funded or guaranteed student loans, your SSDI payments (but not SSI payments) are subject to lien or attachment.
• If you owe alimony or child support payments, disabiilty benefits can be attached to make these payments.

Just because the law does not permit liens or attachments of Social Security money, it doesn't mean that it won't happen.  The biggest danger comes from co-mingling funds:  placing your Social Security money in the same bank account as other money.  The bank could make an error and allow a creditor to attach Social Security money.  In that case, you would have to go to court and prove that the money attached was from Social Security and not from some other source.

Protect yourself by placing your Social Security payments in an account by themselves--and do not put any other money into that account.  Keep your Social Security money totally separate. Also, you may want to think about not having a co-owner (such as a spouse) on your bank account. Your money may be protected; theirs may not. It could be difficult for the bank to know how much of the money is yours and how much is the other person's.

So, generally creditors such as mortgage companies, car finance companies, credit card companies, banks, furniture stores, etc. may not attach or garnish Social Security money.  However, SSDI funds can be attached for debts owed to the federal government or to alimony or child support.

It is always a good idea to protect yourself by placing your Social Security deposits in their own dedicated account, and avoid co-mingling of Social Security funds with any other money.