The Basics of Garnishment

Garnishment is a legal process in which a portion of your wages or benefits is withheld to pay off a debt. For most types of income, creditors can sometimes garnish wages, bank accounts, or other sources of payment to satisfy outstanding debts. However, Social Security Disability benefits are generally protected from garnishment under federal law.

When Can SSDI Benefits Be Garnished?

In most cases, Social Security Disability benefits cannot be garnished for private debts, such as credit card bills, medical bills, or personal loans. However, there are exceptions where your benefits could be garnished. These include:

• Federal Debts: The U.S. government can garnish your SSDI benefits for certain types of federal debts, including:
• Back Taxes: If you owe federal taxes, the IRS can garnish your SSDI benefits.
• Student Loans: If you have defaulted on federal student loans, the Department of Education can garnish your SSDI benefits.
• Child Support and Alimony: If you are behind on child support or alimony payments, your SSDI benefits can be garnished to fulfill these obligations.
• Court Orders: In some cases, if there is a court order regarding debt repayment (such as child support, alimony, or other federal obligations), the court can allow garnishment of SSDI benefits. However, even in these situations, the amount that can be garnished is typically limited. For example, child support can be garnished, but there are rules in place to protect a portion of your benefits from being taken.
• Other Debts: Private creditors (such as credit card companies or medical providers) generally cannot garnish SSDI benefits. However, if you owe money to a private entity and they have a judgment against you, they might try to garnish other assets (like your bank account), but they cannot touch your SSDI benefits directly.

How Much of Your SSDI Benefits Can Be Garnished?

For federal debts like taxes or student loans, the amount that can be garnished from your SSDI benefits is limited by law:

• Federal Taxes: The IRS can garnish up to 15% of your monthly SSDI benefit for back taxes.
• Student Loans: The Department of Education can garnish up to 15% of your monthly SSDI benefits for defaulted student loans.
• Child Support and Alimony: Child support can be garnished up to 65% of your SSDI benefits if you are in arrears, but this amount can vary depending on your circumstances.

How to Protect Your SSDI Benefits from Garnishment

If you are concerned about garnishment of your SSDI benefits, here are steps you can take to protect your income:

• Review Court Orders and Notices: Ensure that any garnishment orders are legitimate and specific to the types of debts that can legally be garnished from SSDI benefits.
• File for Exemption: In some cases, if you believe that the garnishment is unlawful or will cause undue hardship, you may be able to file for an exemption or request a reduction in the garnishment amount.
• Consult with a Professional: If you are facing garnishment or have concerns about your benefits, consult with a financial advisor or attorney who specializes in Social Security law to help you navigate the situation.