An elderly client called our Baltimore office today sounding so desperate and worried out of her mind. Both her and the husband are on a fixed income. Social Security is their only source of income. A debt settlement company she was working with had told her that her Social Security benefits would be garnished by the credit card companies and banks she owed money. I suppose it was a scare tactic to compel her to hire the company or maybe just the lack of knowledge.
As your Baltimore bankruptcy lawyer I know that Social Security benefits cannot be garnished by a creditor other than the federal government as a result of a debt pursuant to Sec. 207. [42 U.S.C. 407] (a). That section states:
The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law.[Emphasis added].
This means that a credit card company or bank cannot go after your Social Security benefits to pay off any balances you may have. Creditors cannot garnish the benefits.
Furthermore, as long as you prove that money deposited into your bank account came from the Social Security check it would be protected as well.
Your retirement safety is intact. Social Security benefits cannot be garnished by any one else other than the federal government. Do not be fooled into believing otherwise.
If you have any questions please contact our Baltimore bankruptcy lawyers at 410-849-9529.
Disclaimer: This entry is provided for informational purposes only. No attorney-client relationship is formed from the consumption of the content herein. Always contact a knowledgeable bankruptcy attorney before taking action.