Can Social Security and retirement income be garnished?

Submitted by hbchiefs on Wed, 01/21/2009 - 22:09
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i can't pay my credit card bills, what can they do to me? They sent me a letter saying if I dont pay they will get a judgment and do so. I thought that retirement income source and Social Security income couldnt be garnished? Can a credit card company garnish my wages?

dotsden (not verified)

I keep reading here that other than federal taxes, alimony, and child support that ss benefits can't be touched. My 78 yr old sister and her husband had a USDA rural development mortgage, he passed away two years ago and she could not make the payments. She tried to sell the property but could not find anyone who qualified. Now, they notified her that they will be taking 15% of her ss benefits starting in September. Is this legal?

Wed, 07/07/2010 - 00:49 Permalink
daena (not verified)

Hello,
My mother recently received a summons for a judgement. It was filed on June 14th but she received it last week. It sates that she has 30 days to respond. How do we now what date to go by since it says 30 days once you receive it?

Should my mother respond? My mom only receives SSI and does not have assets or owns anything. She is stressed out and does not know if she should contact the creditors to arrange payment. Actually she is really limited. This is state of California. Which form would she fill out if needed?

Thanks.

Thu, 07/15/2010 - 06:18 Permalink
Aaron

Hi Daena,

The 30 days will start form the day after which the summons was served. Yes, your mother should respond to the summons. Else, the creditor will win a default judgment against your mother. However, after answering to the summons she can contact the creditors, and work out a settlement. She should get the settlement agreements in writing, stating that the lawsuit will be stopped.

You will get the answer forms from the Internet, and also the court clerk.

Thanks,

Aaron

Fri, 07/16/2010 - 12:01 Permalink
birdbrain (not verified)

My husband was out of work, he finally got a temp job in Idaho, he is due for court regarding credit card can I go in his place, we cant afford for him to fly back and loose pay also the credit card wrote us a letter stating they would accept 3,200 we owe 4,100 can I just go to clerk of court and file that?

Sun, 07/18/2010 - 16:58 Permalink
SusieQ (not verified)

I owe on eight different credit cards. Lost job in 2008 but have
mained payment on all using savings. Which I moved to the
checking account from fidelity M M. My only income is SS. I
no long have any savings with fidelity as I moved the last
1500 dollars to checking. So it is getting down to having
nothing for emergencies. Also I have direct deposit for
SS check. I haven't defaulted on any yet but am on the
verge. I need to know which way to turn. Do I need
to claim bankruptcy?

Wed, 07/21/2010 - 18:41 Permalink
SusieQ (not verified)

I need to add to other post. I owe approximately 38,000 in CC
debt and have an offer to do balance transfer for 0 % with 4%
fee. 0% til June of next year. I could clear about 4 of the cards
Is there any law in about a year from now if I had to claim bankruptcy about this?

Fri, 07/23/2010 - 20:00 Permalink
Mildred Sanchez (not verified)

Hi, I live in Florida with my husband and we both receive SS benefits & I have a Government pension from Puerto Rico. All benefits are deposited directly into a check account. Are these funds ganishable? We are in the preliminary process of filing for banckruptcy.

Sat, 07/24/2010 - 15:50 Permalink
Brian (not verified)

I have an account with the Navy Exchange (AAFES). I dont know if they are a private company or government own. My account with has came into default for lack of payments. They send a request to garnishment my retirement. Is this possible or can I stop they from taking my retirement for repayment?

Tue, 07/27/2010 - 12:23 Permalink
Aaron

Hi SusieQ:

You can take the 0% balance transfer offer, and consolidate all your cards into one. This will help you in paying off the cards, and saving too. If possible try to pay off the whole debt within this 0% transfer period.

Mildred

Social Security is not garnishable as such. However, accounts may get garnished. You will have to notify both bank where you have the account, and the creditors that all your income comes from Social Security.

Brian

AAFES is a government insured company, and so as far as I know they have the authority to garnish your retirement.

Thanks,

Aaron

Wed, 07/28/2010 - 11:03 Permalink
tika (not verified)

My husband and I are legally married in the state of Oregon. we both have our own homes, and each are NOT listed on each other propertys. I have several thousand dollars worth of Credit card debit. Can they come after my husband for that? We are considering divcoress but just haven't filed. The debt was accured while married, he had no idea. He is not a signer on any of the cards.

Thu, 07/29/2010 - 05:05 Permalink
tom tom boom boom (not verified)

i owe a few credit cards the interest and late fees are outrageous. I have social security, retired military retired federal il civil service. this has been my only income for 10 years and the only money that has gone into my checking account is from these pensions. I am notifying my bank that if a garnishment is issued against me they have no authority to honor it.Also i am writing the lawyer who is sueing me on behalf of the cc company that he is wasting his time and any other debts he incurs are his problem. i had been struggling paying my cards on time and got notification from cc pay full amount now or rate will go to 25.4 over prime. So they get nothing the greedy fools priced themselves out of the market

Sun, 08/01/2010 - 19:37 Permalink
puff1piper2 (not verified)

I have a credit card under my name. I thought I paid it off last year through payments to a collection agency. I have bank statements to prove it.
A lawyer called me tonight and said that I owe almost $6000 to this bank. I explained to him that it was paid. He said, no it isn't, you must have just paid to catch up. I haven't heard from this bank for over a year and a half. How come a lawyer phone call, and no letters or anything? Can they take money from my joint account with my husband for my credit card?

Tue, 08/03/2010 - 01:09 Permalink
Aaron

Hi tom:

If you are on Social Security, it is true that creditors can't garnish your account. However, this cannot stop the creditor, or collection agency from suing you. If you have any assets, they can put lien against that.

puff

You need to check the status of this account on your credit report. See, if it's showing the payment. If it is not, you can dispute the listing with the credit bureaus.

Thanks,

Aaron

Tue, 08/03/2010 - 10:47 Permalink
MaeBell (not verified)

recevied call from recover company about debt they stated that the account wasopen in2002 .i recevied ssa&a small retiredment.i live on my parents land .what can i do.

Thu, 08/05/2010 - 20:32 Permalink
alice (not verified)

My husband is self employeed so i know they can't do a garnishment. But if they do a bank garnishment, how does it work when the bank account is in both our names but the garnishment is only for him.

Fri, 08/06/2010 - 00:04 Permalink
mon (not verified)

i try to find out whatcan they take outv for pension and socialsecurity for childsupport.

Fri, 08/06/2010 - 02:14 Permalink
Aaron

Hi maeBell:

Please provide more details on this debt. Also, you should check your credit report for the collection agency trying to collect this debt.

Alice:

I think you should remove your name, and money from this account and notify the bank that money to this account comes from Pension and Social Security.

mon

This depends on the state laws. Pension and Social Security in general are non garnishable, but can be garnished for alimony and child support purposes.

Thanks,

Aaron

Fri, 08/06/2010 - 11:36 Permalink
SG (not verified)

I receive social security and that is deposited into my checking acct. I also work part time 1 night a week at a restaurant and sometimes I put some of that cash into my acct to pay the bills. we are now going to pay card so that money I make as a server will be loaded every am onto a seperate debit card. I know they cannot attach or garnish my social security, but I am worried about the pay card. it is not a pay check and is not distributed by our co, not even by the office itself but the money is recorded in each restaurant by the mgr at the end of the shift by putting it onto the computer and it then is transferred onto this pay card. I am barely making it and I own no home, I live with a roomate, and I do have a car payment, but as I understand it they cannot take a car that is not paid for, this economy is not good and we are all in survival mode, thanks for your answer ahead of time.

Sat, 08/07/2010 - 02:54 Permalink
Aaron

Hi SG,

Can I know if this money you are getting from the part time job is getting deposited in the checking account? If it is, and if the creditor knows anything about this account, they may be bale to garnish money from this account once they wins a judgment against you.

Thanks,

Aaron

Tue, 08/10/2010 - 10:33 Permalink
guest (not verified)

ive working in a certain company for 15 years when our the owner sold his company to another company, leaving as all who our in our senior age without a job, and dont even bother to pay our length of service. and sad to say that i have an existing credits on a certain bank, but before that i manage to balance transfer it to another bank, but the first bank told me that i still have to pay a certain amount eventhough my balance transfer is more than i paid for right now, i dont know why? still out of job and seeking for your advice,, thanks in advance.

Thu, 08/12/2010 - 01:26 Permalink
Aaron

Hi Guest,

Please provide more information on this account. What kind of an account is this, and how old is this account?

Thanks,

Aaron

Thu, 08/12/2010 - 11:48 Permalink
JIB (not verified)

I am struggling to pay various 2 credit card companies, student loans and of course regular bills... Do the courts base anythings off of income in order to establish a judgement if a creditor wants to freeze your bank accounts? I just don't make enough anymore to pay it all.

Sun, 08/15/2010 - 05:47 Permalink
Aaron

Hi JIB,

The judgment is issued based on your income and your assets. You will have to provide information on your income and assets.

Thanks,

Aaron

Mon, 08/16/2010 - 11:44 Permalink
Andreson (not verified)

Hello my wages are currently being garnished for a debt that now has more than doubled is there a process in which i can request or have the debt balance be lowered to its original principal sum?

Fri, 08/20/2010 - 19:09 Permalink
Doll (not verified)

We recently in 2/2010 obtained a debt consolidation firm for the "are you over $10,000.00 or more in debt. where you pay a certain amount to them and they try to clear up your debts with no balance or a minimal balance." Recently recieved a Summons in a civil action for 2 of the credit cards" haven't heard from the other ones. What happens next? Will they work with this debt consolidation company or sue me?

Wed, 08/25/2010 - 00:28 Permalink
Aaron

Hi Doll,

Will they work with this debt consolidation company or sue me?

This depends on the credit card companies. Some do agree, some do not. Can you give the name of the debt consolidation company? Did you check if the company is an authentic one?

Thanks,

Aaron

Wed, 08/25/2010 - 10:16 Permalink
Aaron

Hi wilma,

The credit card companies cannot take away your house on non payment of bills. However, they can sue you for the debts and if they win, they can put alien against your home. When lien is put on your home, you won't be able to sell the house till the lien gets removed. The lien can only be removed after you pay off the judgment amount.

Thanks,

Aaron

Fri, 09/03/2010 - 10:09 Permalink
dekay (not verified)

what is the best wriiten response that you can sent to the lawyers who are suing on behalf of a credit card company company which states the next step is garnishment

Wed, 09/08/2010 - 16:28 Permalink
Aaron

Hi dekay,

You must have been served with a summons. In order to file your answer to the summons request the court clerk to help you.

Thanks,

Aaron

Thu, 09/09/2010 - 09:55 Permalink
brenda augustine (not verified)

can not paying my credit card cause them to garnish husbands social security?

Mon, 09/13/2010 - 12:46 Permalink
doobie bob (not verified)

My wife losing job due to layoff next feb/mar. 2011.
i had big credit card, due to trying to start on-line business, did not work. i got another 0 interest card, & paid it on the old account, which i had them close out, & they kept old intr. rate 9.9 for me. I am 69 yr. old retiree, & wife will be 63 next mar. My 2 cards are unsecured, & only in my name. will my wife have to pay them, if I pass on??

Thu, 09/16/2010 - 00:19 Permalink
Aaron

Hi doobie,

This will depend on the state laws you live in. If your state is a community property state, both the spouses are held responsible for the debt incurred by the other. In that case she may have to pay your debts after your expiry.

It will also depend on whether or not you have any assets. Your assets can be used to pay off the debts. This too will depend on the state laws.

Thanks,

Aaron

Thu, 09/16/2010 - 10:45 Permalink
Iowealot

I going to give you all some good advice. I have been on the internet for about 2 weeks now, reading and researching debt collection agencies, their tactics and how to deal with them. First, do not assume that CA's are afraid of the FDCPA. They are not! They break the law as naturally as they breathe. They do not care about the FDCPA.

Now, advice. If you only get SS or SSI as income and you can't pay your credit card debts, close your bank account, asap! Get your funds on a debit card or get a check mailed from the government. The government has many people thinking that direct deposit is the only way to get their money. This is not true!

Next thing is this. Any collection agency can get a summary judgement against you, freeze your bank account and take all your money even though there are protected funds in the account even though this is illegal. Why? Because the collection agencies and the banks are criminals without scruples or compassion for poor people. The bank will charge you a fee of $100-300.00 just for freezing your account, so they don't give a damn about FDCPA because they are making a lot of money complying with a court order. The judges write summary judgements against creditors even if the debt has not been validated. There are even scam agencies that make up fake debts and go to the court, get summary judgements, scare people into paying money they don't owe. You will have no clue that anyone is trying to collect a debt from you. Sometimes you might get a letter and you might send a DV request and they don't respond. Next thing you know, your bank account is empty. Wake up people of America. The CEO's of banks make billions of dollars in salary. They have us all brainwashed to think we have to have a bank account. I just closed my bank account yesterday and have stopped my social security direct deposit and will now get my check on a debit card. So. GOOD ADVICE if you get only SS or SSI and owe people money...CLOSE YOUR BANK ACCOUNT!!!!!

Sat, 09/18/2010 - 00:42 Permalink
Iowealot

Before I made the decision to close my bank account, I went to Bank of America and asked them about the freezing of bank accounts with only SS. The bank representative said if they get a court order as a result of a summary judgement, they will freeze the account. There is no protection. Close your bank account if you are dealing with debt collectors. It will take some time and will cost you money to obtain access to your money. And then the agencies sell delinquent accounts from one to another, creating zombie debt. And many of the agencies do not care about statues of limitations. Read some of these posts. It's scary.

Sat, 09/18/2010 - 03:02 Permalink
Cecille aus M (not verified)

I want to retire my health is weakening but i have to pay my credit card debt. what should i do so i can just pay the principal and not the huge accumulated interest?

Sun, 09/19/2010 - 10:10 Permalink
Deborah (not verified)

I am Sri Lankan and the Bank has now asked me to pay up a payment of Rs. 55,000/- to close the account. They had gone to court, but I did not attend court. They say that they can direct my wages to the credit card account. I have asked them for time, but they say they cannot and they are insisting that I pay up this money. i am in the process of getting my provident fund money and if this cheque goes to the bank can they take the entire amount?

Mon, 09/20/2010 - 05:38 Permalink
Aaron

Hi Cecille,

what should i do so i can just pay the principal and not the huge accumulated interest?

I think it is better for you to settle the debts. Debt settlement will lower your outstanding debt amount by 40-60%. However, settling your debts will hurt your credit.

Deborah,

Laws on debt collection are different in different countries and even states. So, I think you need to check your country and state laws on debt and bank accounts. Also, check the terms of the bank and your original contract with the bank.

Thanks,

Aaron

Tue, 09/21/2010 - 11:00 Permalink
disable & broke (not verified)

i can no longer pay credit card bills, can they go after my social security disability.

Sat, 09/25/2010 - 22:37 Permalink
Aaron

Hi disable & broke,

No, Social Security Disability is non-garnishable under the Federal Law. However, you need to check your state's garnishment laws.

Thanks,

Aaron

Tue, 09/28/2010 - 10:48 Permalink
F. Martinez (not verified)

I check my bank acc. contract and say that they can and will grant garnishment from any curt order including levy. My bank acc. is only for my pension check. Is this is true?

Sat, 10/02/2010 - 10:49 Permalink
daena (not verified)

My mother resides in the state of California. She is being sued by Capitol One and constantly is receiving phone calls from other creditors. She did not respond to the summons and is scheduled for a hearing in the month of December. She is on a fixed income SSI and has direct deposit. What should she do? She does not have the means to make payments unless Capitol One agrees to $10.00 payments. She owes on other credit cards as well. Not sure if she should file bk or just go to court. If she goes to court being on ssi what could happen? Thanks.

Sun, 10/03/2010 - 06:51 Permalink
Lamar (not verified)

My SSD check is deposited in my saving account and then transferred to my checking account. Can a credit card company take that money to collect on the suit they brought against me because it is in the saving account.

Fri, 10/08/2010 - 02:41 Permalink
Sandra (not verified)

Can a c c company continue to add interest and then continue to bill me for it after it was settled and paid in full to the collection agency representing the cc company?

Mon, 10/11/2010 - 00:33 Permalink
Joyce (not verified)

my mom is 81 yr old, only ss and small pension monthly. she cannot pay credit card bill any longer. owes 23000. she inherited a mobile home recently can they put a lien on this home

Wed, 10/13/2010 - 05:48 Permalink
Nicole90018 (not verified)

I was just issued a summons that my credit card company is suing me. I dont work. I recieve SSi benefits for my son. I own my car. Can they take my car and the SSi benefits from my checking account? I was thinking of transferring the title of my car out of my name into someone elses. Lets say my mother. Is that a good idea? I live in California. on the summons it stated they want to charge 10% from 2005 until now. But isnt there a 4yr limitation? Or does the 4 yr start from when they filed?

Tue, 10/19/2010 - 23:52 Permalink
Ginger Peacock… (not verified)

my husband and i have a joint account. He works a regular job and I am on SSI. Recently a credit card company froze our checking account. The credit card was my bill. he did not cosign any thing. Can our joint account be garnished, Should I remove my name from the account or what should i do. Credit card co. would not work out a settlement prior to freezing the account.the fee they charged was approx.1920.00.the total of the bill was less than 500.00. please help . We depend on my SSI check

Wed, 10/27/2010 - 09:59 Permalink