social security

by gene
(cambridge MD)

can your social security be garnished to pay a debt?

Comments for social security

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Dec 29, 2011
social security
by: Debtcollectionanswers.com

Section 207 of the Social Security Act prohibits creditors from taking your Social Security payments. However, there are exceptions. For example, those payments can be taken by the Federal government if you owe a past due student loan, back taxes, or other money to Uncle Sam. Also, they can be taken if you owe past due child support.

If a creditor or debt collector threatens you with garnishment and your sole source of income is Social Security, write the creditor or collector a letter telling it that fact and remind it that Social Security income is exempt from collections under Section 207 of the SS Act. If that income is taken from you for some reason, you can use the same section of the law as a defense for why the garnishment was illegal.

Also, if you have other sources of income besides Social Security and you are concerned that the money in your bank account may be taken, set up a separate bank account for your Social Security payments so that those funds are kept totally separate from the other funds, which are susceptible to garnishment. Otherwise, if a creditor does get permission to garnish and your Social Security income is mingled with those other funds, your bank may unwittingly give the creditor some or all of your Social Security money. Then, you will have to initiate a formal process to get that money back.

Jan 28, 2012
garnish money for owed phone bill
by: Anonymous

can my local phone company garnish disability or old age security payments?

In answer to your question, no, it cannot. Section 207 of the Social Security Act prohibits creditors from taking your Social Security payments. However, there are exceptions. For example, those payments can be taken by the Federal government if you owe a past due student loan, back taxes, or other money to Uncle Sam. Also, they can be taken if you owe past due child support.

Feb 07, 2012
They already know
by: Anonymous

Asset Acceptance recently filed a lawsuit against me even though they know I'm on SS and I wasn't refusing to make payments. I had a health crisis 2 years ago and have other creditors and I filed for my SS 6 years early (getting only 71.5% of my benefit for the rest of my life) just so I could start paying my creditors something. All other creditors agreed to a payment plan of $100 a month. Asset demanded $525 per month just for themselves and filed suit knowing I couldn't afford it. Their reason, I'm sure, is to get their claim "secured" so that after they make my life a living hell and force me into bankruptcy, their claim will be paid in full and my "real" creditors (the ones who actually loaned me money) will get absolutely nothing. My question is this: how do I protect the creditors I have a moral obligation to and who have been fair with me? I have no reason to file BK other than the lawsuit, because if I wait until after they get a judgement then it will be too late for the other creditors. To top it off, they even filed a false affidavit in court, claiming that they bought my account from the original creditor which was a lie (the original creditor sold it to LVNV funding). While trying to negotiate a payment plan I kept questioning their statement that they bought it from the OC but thought maybe the employees just didn't know. Now they have taken this lie to court but they can get out of the perjury charge by calling it "bona fide error", "litigation privilege" or whatever. I cannot afford an attorney just to fight "them" and will now probably have to get a BK attorney and file just to make sure my other creditors are treated fairly. (They also lied on my credit report making it appear as a recent delinquency.) For some reason they are determined to ruin the rest of my life. They are so greedy that they are insane. Please advise what I can do to protect my other creditors.

In answer to your question, Section 207 of the Social Security Act prohibits Asset Acceptance or any other creditor or collector from taking your Social Security payments as payment for a debt that you owe. However, those payments can be taken by the Federal government if you owe a past due student loan, back taxes, or other money to Uncle Sam. Also, they can be taken if you owe past due child support. If Asset Acceptance is going after your Social Security income therefore it is breaking the law and you should immediately schedule a free consultation with a consumer law attorney. The attorney can help you stop Asset Acceptance and you may even have grounds for a lawsuit against the collection agency.

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