Retirees Face 3 Social Security Garnishment Rules as Some Debts Can Still Cut Benefits
Updated
Updated · CBS New York · Jun 9
Retirees Face 3 Social Security Garnishment Rules as Some Debts Can Still Cut Benefits
3 articles · Updated · CBS New York · Jun 9
Summary
Three key rules govern how retirees’ Social Security can be touched by collectors: most private creditors cannot garnish benefits directly, but some government-linked obligations can.
Federal debts and court-ordered obligations — including delinquent taxes, some student loans, child support, alimony and certain restitution orders — may still trigger benefit reductions under separate collection rules.
Two months of electronically deposited Social Security benefits are generally shielded in bank accounts, yet protection can weaken if funds sit too long, mix with other deposits or exceed the protected amount.
Rising debt burdens in retirement — from credit cards to mortgages and tax bills — are making those distinctions more important as collection activity can continue well after workers leave the labor force.