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: 4,637
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?
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Accountant
Category: Finance
Satisfied Customers: 4,637
4,637 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

2,608 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)

2,218 satisfied customers

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

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,920 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
I am not sure I have the right agency to question Dot
I am not sure I have the right agency to question Green Dot prepaid Turbo Visa card. I am unable to access my Tax refund, I am on a merry-go-round with out the "merry" … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,113 satisfied customers
I'm picking up the deed to my house tomorrow. My father
I'm picking up the deed to my house tomorrow. My father passed away and it took some time to get everything in order. I need to give my sister 20k and I don't have that kind of money so I was reading … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,199 satisfied customers
I am an American shareholder in a private Canadian company.
I am an American shareholder in a private Canadian company. I am loaning capital to the company. If I took out a loan from my institutional bank to personally loan to the Canadian company, can I use t… read more
Carter McBride
Carter McBride
LLM
1,046 satisfied customers
What is the max contribution to a sep ira? would we
what is the max contribution to a sep ira? would we considered a business expense or be deducted from personal tax… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
First of all the company (partner owns not business partner)
First of all the company (partner owns not business partner) I work for considers me self-employed and my profession is Leasing Agent. I filed 2013 taxes, and I accidentally misunderstood the tax form… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I am looking to build a chart of accounts for a restaurant
I am looking to build a chart of accounts for a restaurant that strictly delivers what would be needed for tax purposes. What accounts would be necessary to properly break out the expenses and revenue… read more
Carter McBride
Carter McBride
LLM
1,046 satisfied customers
Not sure if there really is a black and answer to this. I am
Hi, Not sure if there really is a black and white answer to this. I am currently considering closing on a $260,000 new construction home in Boulder City, Nevada. This area has been kind of booming as … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,113 satisfied customers
Chad! We spoke a few weeks ago but I have another finance
Hi, Chad!We spoke a few weeks ago but I have another finance question as it pertains to my divorce settlement. I'm trying to decide whether to keep a property or let him buy me out and just want to un… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,199 satisfied customers
If parents buys (on paper) a house for a child - meaning the
If parents buys (on paper) a house for a child - meaning the parent is signing for the loan - and the house is owned by the parent - the child is not listed on loan or deed. The child pays the mortgag… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,113 satisfied customers
I own a staffing agency and I want to ensure I'm paying my
I own a staffing agency and I want to ensure I'm paying my employees properly with the new salary minimums. I believe 50k is the new minimum salary. If I pay recruiters commissions on top of base, can… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I have $250K tax free funds to invest. This sum is currently
I have $250K tax free funds to invest. This sum is currently at a Wells Fargo bank. Where is the best place to move it for a time as I determine where to spread it on investments? Should I move it to … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,199 satisfied customers
If you do not intend to address all my concerns do not
Please if you do not intend to address all my concerns do not answer & refund me. I have asked for advice on this same topic three times and get no real answer. Here is the question once more... "Firs… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I was recently offered a job that is 10000 less a year than
I was recently offered a job that is 10000 less a year than what I make now. The new job would be exactly what I'm looking for in terms of moving up and experience however there's a big gap financiall… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,113 satisfied customers
I am thinking about selling my car. It needs maintenance. Is
Hello!I am thinking about selling my car. It needs maintenance. Is it better to let it repair and then try selling it, or the other way round?… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I just have a hypothetical question for you. Lets say if you
Yes, lets say if you have an income of about 96000 a year what can you qualify for … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,199 satisfied customers
Can I take a loss on a truck depreciation of 60,000 for an
Can I take a loss on a truck depreciation of 60,000 for an s-corp on a K1? Or, am I only able to deduct the up to the actual income?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,199 satisfied customers
How much does a forensic accountant cost for a divorce case?
How much does a forensic accountant cost for a divorce case? I would basically be trying to recover an additional 60-100k. I'm trying to see if it's worth it.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,113 satisfied customers
I deposited a check for $30,000 given as a gift from my
I deposited a check for $30,000 given as a gift from my mother without her or my understanding the limit of the annual gift tax exclusion. What I would like to do is rework this by refunding her the t… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,199 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