Can Social Security Payments be Garnished?
In the wake of the recent decision to reinstate—and then reverse—certain student loan policies, the Trump administration announced last month that it would be ending the defaulted payment system for student loans. However, after previously stating that this change could result in Social Security benefits being garnished for those who had defaulted, the White House later walked back the announcement. Nevertheless, if you receive Social Security Payments, you may be wondering, can social security payments be garnished? We will break down the logistics of garnishment for Social Security benefits in this article.
Can Social Security Payments be Garnished?
The short answer is, yes, they can. However, there are strong protections put in place by the federal government that prevent certain types of debt repayment. Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits cannot be garnished to pay for most consumer debt. Typically, benefits can only be garnished if the debt is court ordered.
Debts that Cannot be Garnished
- Medical debt
- Credit card debt
- Car payments
- Retirement accounts
- Private student loans
If you have court-ordered debt, your benefits may be garnished.
Debts that Can be Garnished
- Unpaid federal taxes
- Federal student loans
- Child support
- Spousal support
- Overpayment of government benefits
However, there are limits to the amount that can be garnished: it can be no more than 15% and must leave the beneficiary with at least $750 per month. This ensures recipients have some income to cover basic daily necessities. Yet, it is important to note that this amount has not changed since 1996. It hasn’t been adjusted for inflation in almost 30 years and is significantly below the poverty line.
Since the COVID-19 pandemic raised concerns about repaying student loans, many borrowers have remained in default or enrolled in income-driven repayment plans. Pandemic-related relief also allowed them to pause payments. Currently, Social Security benefits cannot be garnished for student loans due to this policy that remains in effect post-pandemic.
Additionally, student loan debt can be canceled or forgiven through the Total and Permanent Disability (TPD) program if you are considered “totally and permanently disabled” and will most likely never be able to work again.
How Garnishment Works
You will be notified of intent to garnish your Social Security benefits. Your bank is required to protect up to two months of federal benefits that were directly deposited into your account. This is known as the “lookback period,” during which the bank must review your account history when it receives a garnishment order and ensure that the equivalent of two months’ worth of benefits remains protected from freezing or seizure. The garnishment will be taken directly from your Social Security direct deposit.
It is important to keep track of your debts and any amounts you may owe to creditors.
Separate Social Security Account
Consider opening a dedicated bank account solely for your Social Security direct deposits, with no other sources of income linked to it. This can help protect your benefits from non-eligible debts.
Hardship Programs
There are protections that may help reduce or eliminate debt collection efforts, such as debt settlement, consolidation, or hardship programs—especially for individuals who are elderly or disabled. These options vary by creditor and are not offered through the Social Security Administration (SSA); you’ll need to contact your specific debt collector or credit card company to explore what programs may be available. They often include lower interest rates, reduced minimum monthly payments, and occasionally suspension of interest accrual. To enroll in a hardship program, an individual must contact their credit card issuer to request temporary “hardship” status.
There are also additional resources available for those considering bankruptcy. For more information, it’s best to contact your creditors directly.
The bottom line is: don’t avoid communication with debt collectors—be proactive in finding solutions.
Appeals for Garnished Benefits
You have the right to appeal a garnishment of your Social Security benefits if you believe it is unjust or that your payments are protected. You can request a hearing before an Administrative Law Judge to present your case for relief of the garnishment.
Overpayment
There are certain cases where you may have received an overpayment of your monthly Social Security benefit. This typically happens when the SSA has incorrect information or when a recipient fails to update the SSA about income sources, resulting in an inaccurate calculation of their monthly benefit.
The SSA will wait 30 days from when they notify the recipient of an overpayment before beginning to collect reimbursement. If you do not contact the SSA to arrange repayment, they may withhold part or all of your benefits.
Understand Your Rights
While Social Security payments are generally not subject to garnishment, it is important to understand the legal parameters if you have debt and are receiving Social Security benefits. If you are unsure about your debt status and how it may affect your monthly benefits, it is highly recommended that you seek legal guidance. An experienced debt collection attorney can help you navigate the legal regulations surrounding garnishment of Social Security payments.
Fierce Advocacy
If you need help applying for disability benefits or have been denied, contact us at 877-529-4773 or visit our website for a FREE case evaluation. At Nyman Turkish, we have over 100 years of combined experience handling SSDI and SSI claims. Our experienced attorneys and staff are here to help you secure the benefits you’ve worked hard for and rightfully deserve.
