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Yes. What they cannot do is attach your social security benefits. What I'd do is cancel the direct deposit on your social security payments, have a physical check mailed to you instead and then cash the check (not at the bank where your accounts have been frozen.) Since it's a government check you should have no trouble getting any bank to cash it.
Your bank accounts are not exempt from garnishment. only the SSI money is-once it is deposited, it is free game.
Safe from Garnishment
Federal law makes Social Security benefits 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 benefits is EXEMPT from LEVY OR ATTACHMENT__________________
I see bank accounts garnished with SSD money in it all of the time. there is a difference between a Disability Insurance Benefits (money that you have earned) and SSI (money you have not) I believe the question is about DIB benefits which are not exempt from garnishment. I see this happen frequently. If the money is in an account and there is a judgement against the receipent-they can attach the account, not the check. SSI benefits are different-but I have seen bank accounts attached anyway regardless of where the income is from. Once it is in an account, if it is the only money in the account, then it can be overturned, if not, why would SSA spend the time trying to figure out what is earned income, what is interest, what money you have spent? If you have a judgement against you and you are afraid your credit card company will take the money, go talk to a credit councelor-they can cut a deal for you, and it's better than trying any kind of "cheating", like cashing your dib check. SSD claimants frequently run into all kinds of debt while they are waiting for benefits. Companies are more prone to discuss issues with you if they find that you have a ligitimate reason for not paying your bill. You can forward them a copy of your decision. What most people also do not realize and what the card companies do not tell you is that sometimes there may be a clause in your contract about disability-you may be able to make a minimal payment and not have it hit your credit report.
Please contact a non-profit credit councelling agency to help you figure out what to do about your bill. They can intercede for you with the credit card company.
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