Can Social Security and retirement income be garnished?

Hi Kristy:

Under the federal law, social security income cannot be garnished. One thing that your mother can do is open a new account in another bank. She should also inform the bank that, her money comes from social security. This may help.

VBrown:

There is no specific time limit within which a credit card company may write off a debt. It varies according to the company, and according to the debt. However, they generally write it off, when they realize that they won't be able to collect the amount owed, from the debtor.

Hi Dolly:

If you do not make a settlement with the company, and yourself get a written copy of the contract, the company may come back and demand more money or the deficit amount from you. Therefore, it is better to get a written contract of the settlement. While settling with the company, mention that you want to pay, but won't be able to pay such high amounts, because of your financial problem.

Barbie:

Your question is not clear to me. If you would have been more clear, I could have helped you with your problem.

Thanks,

Aaron.

Hi Marion,

You don't need an attorney to deal with the case. However, you can go for a free counseling with an attorney, for dealing with this case. You should appear in court, and provide them with a copy of your monthly income and expenditure. This will determine the judgment amount. Your social security cannot be garnished. However, your wage is garnishable. At least 25% of it can be garnished. It also depends on the type and amount of debt.

However, you can try and settle the debt with the creditor itself. Debt settlement lowers the outstanding debt amount by 40-60%.

Regards,

Aaron.

Hi Kansas:

Child support cannot be garnished. However, you need to check your state laws on this.

Andrea:

If the judgment is on state or federal taxes, then it can be garnished.

Doug:

Retirement payments are not garnishable. However, you need to check the state laws on this. Moreover, if you can prove that all your money comes from retirement payment and gets deposited into that account, they may not be able to garnish your account.

I have a question about not paying credit cards. I just sign up for this forum and hopefully u guys can answer my questions. I have few credit cards some of them limit is 300$ some of them 2000$ . my total debt on all of them is not more than 6000$. I was paying my bills always on time-never late for-6years. lately my financial situation got very bad and im not able to pay anymore. I was plannig to do bankupcy but this cost money too :( which i obviously dont have. so my 2nd plan is to not pay at all because i dont have asets anyway. i just dont want collectors to bother me.
i guess i didnt mention that i dont even have ssn # and i got credit cards. i dont have status in usa yet. so i was wondering if they can be really after me if i dont legaly exist here??
I dont want to do that but at this point I dont have any options. I can bearly make it with energy and rent bills. I found some work for cash but its just enough to survive month?Pls help

Hi Marta,

Welcome to this community :)

Your query has been answered to at http://www.creditmagic.org/card/debt-settlement.html#42384 .

Feel free to ask if you have any more queries.

Regards,

Aaron.

Hi Wralph,

Under the Federal Law, Social Security Benefits are non-garnishable. No body can garnish your account, other than the Government itself. However, you need to declare that, all your income comes from the Social Security both to the bank and the credit card company.

Hope this helps.

Regards,

Aaron

Hi Joanne,

If you find it impossible to pay the bills, you can request the creditor or collection agency to agree to a debt settlement. debt settlement lowers the outstanding debt amount by 40-60%. For more details on debt settlement you can refer to http://www.creditmagic.org/repair/about8367.html .

However, as you have received a judgment, you need to appear in court.

Hope this helps.

Regards,

Aaron

Hi Amy:

The creditors and collection agencies can take your money from the joint account. You can take your name out of the joint account, and open a new account in your name only. This will help.

Jerry:

First and foremost, don't go on opening new accounts. This will increase your outstanding debt amount all the more. As you are finding it difficult to pay the dues, you can request your creditors to agree to a settlement. Debt settlement lowers the outstanding debt amount by 40-605. However, you have many credit cards, you can opt for debt consolidation. For more details about debt consolidation, you can refer http://www.creditmagic.org/blog/2009/10/16/debtconsolidation-repaircred… .

Liz:

The creditor or collection agency may not be able to get any money now, as there is no money in that account. However, they will start garnishing whenever you will put money into that account.

Hope this helps.

Regards,

Aaron

Hi Paula:

You can take the help of an attorney regarding this. However, generally speaking, social security cannot be garnished under the rules of Federal Law. Still, you need to check your state laws on garnishment and social security.

Shannon:

As you have got a judgment, you need to appear in court on the mentioned date. Can you tell me, whether or not you received any notice on the judgment before this? However, if you can pay the dues, you can request the creditor to agree to a settlement. Debt settlement lowers the outstanding debt amount by 40-60%.

Buster:

If the account is only in the child's name and if the creditor is not aware of this account, they may not be able to garnish your child's account.

Hope this helps.

Regards,

Aaron

Hi Cathy,

Debt consolidation program is done when you find it increasingly difficult to pay off your debts. In it a single loan is taken out to pay off all the debts or loans, and under this program you need to make a single monthly payment to the consolidation company. The company will then disburse the payment to all your creditors. Thus, your creditors are getting paid. So, you need not worry about garnishments. Debt consolidation helps you to eliminate almost all your debts.

Hope this helps.

Regards,

Aaron

Hi Jim:

Military retirement pay and Veterans Administrative income (VA) cannot be garnished. But there are exceptions. The VA disability received in return of waived military retirement pay is subject to garnishment. This is done in order to provide child support and for alimony purposes.

Sally:

If you fail to pay what you owe to a creditor, the creditor can file a judgment against you. The judgment can either be for garnishing your wages and bank accounts. The judgment can also put a lien on your property. Thus, it's better to pay off what you owe to the creditor. If you are unable to pay the whole amount, you can settle the outstanding debt amount to be paid. Debt settlement lowers the debt amount by 40-60%.

Marty:

If the bill amount is too high you can try to negotiate a payment plan with the creditor. Talk to them about your problem. Mention that you are willing to pay, but it's not possible for you to pay high amount bills. However, as you have received a summons, you need to answer to that. If you face problem in answering to the summons, you can take help from the court clerk. In the answer to the summons mention your financial condition.

Hope this helps.

Regards,

Aaron

Hi Richard,

Can you be more clear on what you need to know? If you can specify what exactly you need to know, I may be able to address your problem.

Thanks,

Aaron

Hi Mary:

Social Security cannot be garnished. However, if there is a garnishment order, they can take money from your accounts. What you can do is open separate accounts for the social security and money that comes from stock market. Use the money that comes from stock market, and save the money that comes from social security. However, you need to declare that the money into the social security account comes only from social security.

To avoid these circumstances, you can try to negotiate a settlement with the creditor. Debt settlement lowers the outstanding debt amount by 40-60%.

Zrent:

The creditors can sue you for not paying the dues. What will happen after the judgment depends on the type of judgment. If it is a garnishment order, they can garnish your paychecks. However, if can also put a levy on your property. as you have received a summons, you need to answer to that. For answering to the summons, you can take help from the court clerk.

Tiffany:

No, if you are paying your debt, your paycheck shouldn't get garnished. Creditor can garnish your account only if they win a garnishment order against you. Thus, if you have proof of the payment, you can file a counter-suit against the creditor. If you can prove that you are paying, the creditor may have to pay you back your money and even the penalty fees.

Thanks,

Aaron

Hi Care,

Social security cannot be garnished by anybody other than the government itself. If you find that your social security has been garnished you can take help from a lawyer. If you don't have much money to afford a lawyer, you can consult American Bar Association. They will help you find a low cost attorney.

Other than this you have taken the right step by complaining this to the FDIC.

Thanks,

Aaron

Hi Dontplay,

In Florida, according to the Federal Law, the wages of the head of the family cannot be garnished. Thus, if you are the head of your family, you wages may not get garnished.

Thanks,

Aaron

Hi Georgia:

If the debt was included in the bankruptcy, you may not have to pay the dues anymore. Any debts included in the bankruptcy, remains noncollectable, even after the discharge of the bankruptcy. If the creditor is still calling you for the payments, you can inform them that this debt was included in the bankruptcy. Thus, there is no fear of getting sued for this.

However, if this debt was not included in the bankruptcy, you need to pay that off. Otherwise, you may get sued or your car may get repossessed.

Mrs B:

Nether Social Security nor pension can be garnished. However, you need to declare to the bank that all your money comes from Social Security and pension. As for the issuance of the credit cards, the bank is concerned with their own business. It is their job to issue cards. If you were aware that you will not be able to pay, you shouldn't have taken the cards.

Thanks,

Aaron