Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

Can social security be garnished at bank level

Customer Question
Can social security be garnished at bank level
Submitted: 2 years ago.Category: Finance
Ask Your Own Finance Question
Answered in 7 minutes by:
1/21/2016
Financial Professional: Tax.appeal.168, Accountant replied 2 years ago
Tax.appeal.168
Tax.appeal.168, Accountant
Category: Finance
Satisfied Customers: 4,796
Experience: Tax Accountant
Verified

Q1: Can social security be garnished at bank level

A1: Yes and no. Technically direct deposited social security payments are exempt from garnishment. However, if the funds have not been direct deposited, they can possibly be garnished. If that is the case, you will have to go through the process of claiming that the funds are exempt. SEE BELOW:

When Social Security Funds Are Protected

Judgment creditors can garnish or levy funds in your bank account in order to collect on their judgments. (Learn more about frozen bank accounts.) But if those funds came from social security, the judgment creditor is limited in what it can do.

Under the law, social security funds are exempt, or protected, from garnishment and other actions taken by debt collectors. However, if your Social Security funds are not direct deposited into your bank account, or if you transfer the funds into another account after they are received, the protection is not automatic. A creditor can still have your account frozen by serving the bank with a garnishment or attachment and, if you don't respond to claim your exemptions, the funds can still be paid over to the creditor. Even if you do assert your exemptions, the funds will remain frozen and not accessible to you until the matter goes before judge for a ruling on the claims.

New Protections for Direct Deposit of Social Security Benefits

Under the new federal regulations, if a bank receives a garnishment order from a judgment creditor, it cannot freeze money that came from social security benefits (or benefits from certain other government sources) if the government deposited the benefits directly into your account within two months prior to the garnishment order. This shifts the burden to your bank to ensure that you have access to two months worth of social security benefits. The only exceptions are for garnishments or attachments for past due child support and federal taxes.

The Bank's Duty to Review Your Account

Here’s how it works. When the bank receives a garnishment or attachment order, the bank has two business days to conduct a review. It must identify your accounts and then determine if the garnishment order is to collect child support or federal taxes. If so, the bank may freeze your funds, even if they come from social security.

REFERENCE SOURCE;

http://www.nolo.com/legal-encyclopedia/protections-social-security-funds-bank-accounts.html

Let me know if I can be of further assistance to you regarding this matter.

Ask Your Own Finance Question
Financial Professional: Tax.appeal.168, Accountant replied 2 years ago

Hello again,

I am checking in to see if the information that I provided was beneficial to you. If o, please be so kind as to positively rate my response so that I may receive credit for assisting you. Thank you in advance.

Ask Your Own Finance Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Accountant
Category: Finance
Satisfied Customers: 4,796
4,796 Satisfied Customers
Experience: Tax Accountant

Tax.appeal.168 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,933 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
In the state of Florida Can credit card company garnish my
In the state of Florida Can credit card company garnish my wages. I am a retired 67 year old. My income is from social security and a teamsters pension . My wife is not associated with my credit card,… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I need answers to questions I have about Social Security
I need answers to questions I have about Social Security Disability overpayments. I am on Social Security Disability and they claim I owe them over $11,000 in benefits I was not entitled to because I … read more
Angie
Angie
Bookkeeper
55 satisfied customers
If a lender gets a deficiency judgement against me (in Texas),
If a lender gets a deficiency judgement against me (in Texas), can they garnish my pensions and Social Security? Can they go after my home or IRA?… read more
Rakhi Vasavada
Rakhi Vasavada
Financial and Legal Consultant
Bachelor's Degree
2,609 satisfied customers
I receive social security and work. Can a student loan place
I receive social security and work. Can a student loan place a garnishment on my salary at the same time? That would be 30% and the limit is 15% Thank you… read more
DanielleCPA
DanielleCPA
Certified Public Accountant
Bachelor's Degree
76 satisfied customers
I want to know, If AAFES which is the Department Of The Army
I want to know, If AAFES which is the Department Of The Army & Air Force Exchange Service Store and Catolag , Has the right to Garnish my Social Security Check that i am about to start recieving ? The… read more
TaxTom
TaxTom
Accountant
Bachelor's Degree
14 satisfied customers
My condo is in foreclosure and has been since last August-CitiMtg
My condo is in foreclosure and has been since last August-CitiMtg is really dragging their feet. I moved out in August and returned the keys to them. I was served with a judgement on Saturday on behal… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
60,693 satisfied customers
i am 80 yrs old and have my virginia social securty and i small
i am 80 yrs old and have my virginia social securty and i small pension of $195 per month. i am ill and have no assets. i tried to pay my credit card debt that is in my name only but they raised the i… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Can credit card co garnish my wages and/or bank acct for non
Can credit card co garnish my wages and/or bank acct for non payment? If so what is the avereage time before they do so and will they inform me before they garnish?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
CAN A CREDIT CARD COMPANY GARRANSHEE A SOCIAL SECURITY ...
CAN A CREDIT CARD COMPANY GARRANSHEE A SOCIAL SECURITY CHECK OR IF THEY HIRE A LAWYER CAN THE LAWYER DO IT. SSA IS MY ONLY INCOME AND I LIVE IN FLORIDA...THANK YOU ...KEN… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My mother received a lawsuit for a charged off credit card.
My mother received a lawsuit for a charged off credit card. Wew replied to the attny stating she was not able to pay due to two recent deaths in the family, her son in March to cancer and her husband … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My parents can no longer live tha RV life. If they ...
My parents can no longer live tha RV life. If they ask their financing bank to take it back and it sells for less than the remaining loan, can the bank attach any of their savings or their retirement … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My property was foreclosed and now I am in debt and can not ...
My property was foreclosed and now I am in debt and can not pay because I am on social security disability. What are my options?… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
What is the statutory limit on Social Security ...
What is the statutory limit on Social Security Retirement Benefits for Back Child Support?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am a 66 year old female with COPD and am the sole ...
I am a 66 year old female with COPD and am the sole caretaker or my 37 year old autistic son. We had financial problems. Capital One was relentless in sending out offers for a credit card, I finally a… read more
Dave Z
Dave Z
Self-Employed
Bachelor
418 satisfied customers
I have had my bank account garnished. One hundred ...
I have had my bank account garnished. One hundred percent of my income is from Social Security Disabilty and medical retirerment from the City of St. Petersburg. I was under the impression that Social… read more
Dave Z
Dave Z
Self-Employed
Bachelor
418 satisfied customers
can a collections agency get file a lawsuit and get a
can a collections agency get file a lawsuit and get a court order to garnish my bank account… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If the Credit Card company files and wins a judgement ...
If the Credit Card company files and wins a judgement against you can they at that point file a lien or judgement or attack your IRA? What are there ways to collect for judgements? If you are on disab… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
can a pension from bell south taht is direct deposited
can a pension from bell south taht is direct deposited to checking account be garnished by creditor… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x