Social Security benifits exempt from levy, garnishment

mr.yet · #1 Jan 31, 2007, 03:32 PM

For your information about Social Security Benfits

Safe from Garnishment

Federal law makes Social Security benifits exempt from levy, garnishment, and assignment- 42 USC 407(a) states. "In general the right of any future payments under this sub chapter SHALL NOT be Transferable or assignable. AND NONE of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levey, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law".

This means that even if a creditor or debt attorney, collection agency has a judgement against you they CAN NOT garnish your SS payments nor can they take the money from you after it has been paid to you; for example, the portion of your bank account that is attributable to your SS benifits is EXEMPT from LEVY OR ATTACHMENT.

willieg · Mar 11, 2007, 09:19 AM

i owe back child support because i have not worked in 2 1/2 years ,i just won my disability case expecting a lump sum in back pay , ? can child support take back pay lump sum and if so what percent i.e. 1-100 % please answer

go-ask-mom · Mar 14, 2007, 07:53 PM

The IRS CAN and DOES garnish SS/Disability checks. I know this for a fact as they witheld from my mom for back taxes owed.....almost 20% of her check each month until it was paid in full.

So much for written rules and laws!

justjackinknox · Apr 25, 2007, 07:45 AM

Quote:

Originally Posted by mr.yet

For your information about Social Security Benfits

Safe from Garnishment

Federal law makes Social Security benifits exempt from levy, garnishment, and assignment- 42 USC 407(a) states. "In general the right of any future payments under this sub chapter SHALL NOT be Transferable or assignable. AND NONE of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levey, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law".

This means that even if a creditor or debt attorney, collection agency has a judgement against you they CAN NOT garnish your SS payments nor can they take the money from you after it has been paid to you; for example, the portion of your bank account that is attributable to your SS benifits is EXEMPT from LEVY OR ATTACHMENT.

Is there a specifc form I should use? I spoke with the court today and she said the law firm would attempt to serve me two more times and then it would automatically go to plantiff. What should I do next? Thanks Mr. Yet...I am going to send you a Paypal $$ if this works.. I am grateful!!!!!!!

JudyKayTee · Jun 16, 2008, 02:42 PM

Quote:

Originally Posted by yelorose4u

Where can I get that Notice of Exempt 42 USC 407?

Read up above - it was already posted. It's not a notice, it's a letter and it reads like this:

Your Name
Your Address

Date

Name of Court where Judgment was filed
Court Address

Notice Of Exempt 42 USC 407

Whereby, note the Defendants' Income is Social Security benefits. The Defendant hereby invokes the exemption granted Under 42 USC 407.

Defendant also moves to dismiss the Plaintiffs action and to vacate any and all Levies and/or Garnishments against the Defendant.
__________________

Your signature

Notary

Send it certified mail to the Court and certified mail to the party that obtained the Judgment.

You have posted the question under a child support question - child support CAN be taken from your SS check so this exemption will not not apply in that case.

go-ask-mom · Aug 5, 2008, 04:57 PM

I know for a fact that they CAN be garnished according to the following law.

Quote:

The Act protects the beneficiary's right to receive Social Security benefits (OASDI and SSI) directly and to use them as he/she sees fit. Specifically, Section 207(a) of the Act (42 U.S.C. §407(a)) 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 monies 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.

However, there are five exceptions related to Social Security benefits.

1. Section 459 of the Act (42 U.S.C. §659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations.

2. Section 6334 (c) of the Internal Revenue Code (26 U.S.C. §6334 (c)) allows benefits to be levied to collect unpaid Federal taxes.

3. Section 3402 (p) of the Internal Revenue Code (26 U.S.C. §3402(p)) allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year.

4. The DCIA allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency.

5. The Tax Payer Relief Act of 1997 (Public Law 105-34; Title X, Subtitle C, Section 1024), (26 U.S.C. § 6331(h)) authorizes the Internal Revenue Service to collect beneficiaries' overdue Federal tax debts by levying up to 15 percent of each monthly payment until the debt is paid.

Generally, SSA's interpretation of its responsibility for protecting benefits against legal process and assignment ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of the Act as long as they are identifiable. For example, only Social Security benefits are deposited into a particular bank account.

JudyKayTee · Aug 5, 2008, 05:33 PM

Quote:

Originally Posted by go-ask-mom

I know for a fact that they CAN be garnished according to the following law.

That's what I said - read it again. "You have posted the question under a child support question - child support CAN be taken from your SS check so this exemption will not not apply in that case."



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