Can Social Security Benefits be Garnished

by Creditors to Pay a Debt?

The Social Security Administration has the responsibility for protecting benefits against legal process and assignment.

Once the benefit has been paid, those benefits continue to be protected under section 207 of the Act as long as they are identifiable as Social Security benefits.

If a creditor tries to garnish your social security check, inform them that unless one of the following five exceptions apply, your benefits can not be garnished.

You also may want to provide this same information to your financial institution and seek legal assistance if you believe it is needed.

Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment.

The law provides five exceptions:

1. Child support and/or alimony may be garnished - Section 459 of the Act (42 U.S.C. 659) - to enforce child support and/or alimony obligations;

2. Benefits can be levied to collect unpaid Federal taxes: Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334

3. Beneficiaries may elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year: Section 3402 (P) of the Internal Revenue Code.

4. Benefits may be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: The Debt Collection Act of 1996 (Public Law 104-134)

5.The Internal Revenue Service has the authority to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid: The Tax Payer Relief Act of 1997 (Public Law 105-34)

This information is part of Social Security research I have done to provide factual information to my readers. I am not an attorney or a tax specialist. Could I help you with a Social Security question? If so, please complete the "contact Us" page.