When you are in a debt, it may seem that all of your assets are at risk. Often collectors can garnish your bank accounts, threaten to foreclose your home, or seize your vehicle. But can they also take away your Social Security? According to Bankrate, Social Security income is exempt from garnishment in almost all circumstances. On rare occasions in the past, a person could have their social security be taken away in order to satisfy a payment that is owed to the government. It could also be garnished in order to satisfy a court-mandated child support. Now, that is not the case.
The U.S. Department of Treasury has ruled that banks must protect federal benefits including Social Security from being garnished by creditors. Should a garnishment be issued to the bank, the account must be reviewed. Only after this process has been completed and the bank has determined that garnishing the account will not affect any Social Security income, can the creditors take money from the account. The government benefits will be protected up to two months' worth of the income value. If the value of the account is less than two months of Social Security payments, then the entire account is protected. Any excess to that amount can be garnished because the bank will assume that it is money from other sources.
If you want more information about Social Security or if you are currently in debt and don't know where the money to satisfy those costs is going to come firm, then it may be a benefit to you to seek assistance from a lawyer. A bankruptcy attorney can assist you in your case and help you to determine whether or not bankruptcy is the best debt-dismissing strategy for you. You may also want to explore the concept of debt reduction or dismissal. A San Diego bankruptcy lawyer can help you with this effort today!