Is Social Security Protected From Government Debt
The general rule is that social security benefits are exempt from garnishment. There are exceptions to most rules. One of my clients had retired from a government agency, and the government claimed the client owed the government money. The agency represents that they have the right to a lien on all government benefits, including social security payments. The agency did not cite a statute or contract right. However, the government's position makes sense. If you owe money to the IRS you cannot receive a tax refund. Similarly, if you owe money to another government agency it seems reasonable that agency have a lien on government pensions and other benefits. As with tax debt, asset protection rules are often different when the creditor is the U.S. government.
I think there is a statute that controls this. This pops up sometimes with sallie mae student loans that the parent guarantees. Kid defaults, and parents find that their social security benefits can be garnished. I am not sure if it was specific to student loan guarantee garnishments, or social security garnishments by the government in general, but there is a certain amount that is exempt. Sorry to be nonspecific.
Can social security be garnished against private debt.
If direct deposits from Social Security are made into a joi9nt account (husband and wife) and left in this account to accumulate over time, will the accumulated funds in this account be protected in bankruptcy liquidation, court ordered judgments and attachment from creditors so long as no other funds are comingled in this account?