3 Social Security wage garnishment rules retirees should know now
Summary
Social Security benefits in retirement are mostly protected from being taken by private creditors to pay debts like credit cards or personal loans. However, the government can reduce Social Security payments to collect certain debts such as unpaid federal taxes, student loans, child support, and alimony.Key Facts
- Private creditors usually cannot directly take part of Social Security retirement benefits to pay debts.
- If a creditor sues and wins, they can try other ways to collect, but Social Security money is largely safe.
- The federal government can reduce your Social Security checks for some debts.
- Debts that can lead to garnishment include federal taxes, student loans, child support, alimony, and some court-ordered payments.
- The amount taken from Social Security depends on the type of debt and the law.
- Many retirees now carry more debts like credit card balances and loans than previous generations.
- Understanding these rules helps retirees protect their income while handling debts.
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