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Quick Answer
Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) helps many people. SSDI and SSI supply people with funds for their basic needs. When you are disabled and on a fixed income, the idea of creditors taking your benefits can be scary.
SSDI benefits can be garnished, but only in certain situations. Most creditors cannot touch your disability benefits. But some federal debts and legal obligations can lead to garnishment. Understanding your rights can help you protect your income.
What Is Garnishment?
Garnishment allows a creditor to take money directly from your income. For most people, this happens through wages. But creditors may also try to collect from bank accounts, tax returns, or benefit payments.
Not all income can be garnished. Federal benefits, including SSDI and SSI, are protected under the law. However, there are exceptions.
Can Social Security Disability Be Garnished?
The rules for SSDI and SSI are different. It is essential to understand which benefits you receive. They affect the level of protection you have.
When SSDI Can Be Garnished
SSDI can be garnished, but only for specific types of debt. SSDI is considered earned benefit income, similar to wages. This is why certain legal obligations allow garnishment.
Your SSDI may be garnished for:
- Unpaid federal taxes
- Federal student loans in default
- Child support
- Alimony (spousal support)
- Court-ordered restitution
For these obligations, the government or court can take a portion of your SSDI before you receive it.
Private creditors cannot garnish SSDI. These include: credit card companies, medical debt collectors, or personal loan lenders.
When SSI Cannot Be Garnished
SSI is different. SSI cannot be garnished for any debt, including:
- Credit cards
- Medical bills
- Student loans
- Child support
- Federal taxes
This is because SSI is a need-based program. The government protects these funds to ensure you can pay for food, housing, and basic needs.
If debt collectors are calling, and you only receive SSI, you can tell them they cannot take that money.
What if My Social Security Benefits Are in My Bank Account?
People worry that once benefits are deposited, creditors can take them. However, federal law requires banks to protect these funds.
Banks must review the last two months of your Social Security deposits. Those funds are automatically protected from garnishment by private creditors.
However, garnishment can happen if:
- You owe child support.
- You owe federal debt.
- You co-mingled Social Security benefits with other income.
Even then, the creditor must follow specific legal steps. If your bank account has been frozen or garnished, contact a Social Security lawyer.
How Much of My SSDI Can Be Garnished?
The amount that can be taken depends on the type of debt:
- Child support or alimony: Up to 60% of your SSDI
- Federal taxes: The IRS decides based on your income level
- Federal student loans: The government can take up to 15%
These numbers may feel overwhelming, especially if you depend on your SSDI to survive. A lawyer can help you challenge unfair garnishments or negotiate payment plans.
What About Overpayments from the SSA?
Sometimes the SSA claims it paid you more than you should have received. The agency can take part of your future benefits until the overpayment is repaid.
This is not considered garnishment, but it functions similarly.
If you believe the overpayment is wrong or you cannot afford repayment, you can request:
- A waiver
- A payment reduction
- A reconsideration
These options can help you keep more of your monthly income.
What Should I Do if Someone Tries to Garnish My Benefits?
If a creditor contacts you and you receive SSDI or SSI, do not panic. Instead, take these steps:
Identify Your Benefit Type
Your protections depend on whether you receive SSDI or SSI. If you’re not sure, check your award letter or online SSA account.
Keep Benefits in a Separate Account
Do not mix Social Security funds with other money. This helps banks identify and protect your benefit deposits.
Ask the Creditor for Proof
Creditors must provide written proof before taking money from you. Many will stop once they learn you receive protected benefits.
Contact a Disability Lawyer
Many people do not realize they have strong legal protections. A lawyer can stop unlawful garnishment attempts. They can also guide you through appeals or waiver requests.
When Should You Talk to a Disability Lawyer?
You should reach out for help if:
- Your SSDI has been reduced.
- Your bank account was frozen.
- You received a garnishment letter.
- You believe the SSA overpaid you.
- You want to understand your rights.
A lawyer can review your case and protect your income.
How Pond Lehocky Disability Can Help
At Pond Lehocky Disability, we know how stressful it is to live on a limited income. When someone tries to take part in your benefits, the fear can be overwhelming. Our team helps you:
- Understand which benefits are protected
- Stop unlawful garnishment attempts
- Appeal SSA overpayment decisions
- Keep as much of your monthly benefit as possible
- Clarify confusing federal rules
Protect Your Benefits. Protect Your Future.
Your benefits are meant to support you, not your creditors. Contact Pond Lehocky Disability today for a free consultation. We will help you protect the income you rely on.
Your benefits are yours. We’ll help you fight to keep them.