Banks Must Review 2 Months of Deposits to Shield Social Security Funds From Creditors
Updated
Updated · CBS New York · May 28
Banks Must Review 2 Months of Deposits to Shield Social Security Funds From Creditors
3 articles · Updated · CBS New York · May 28
Banks facing a levy must review the prior two months of account deposits and protect an amount equal to identifiable Social Security benefits from most private creditors.
Direct deposit records are the clearest proof because electronic payments let banks trace protected federal benefits more easily than paper checks or mixed deposits.
Bank statements showing recurring SSA deposits and benefit verification documents—such as award letters or annual statements—can help when protected funds are questioned.
Rising delinquencies and collection activity have left more retirees worried that credit card, medical or personal-loan debts could disrupt the income they use for rent, food and prescriptions.
The report says federal protections do not remove broader collection pressure, so older borrowers may still consider debt settlement, credit counseling or bankruptcy before accounts are frozen.
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