Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts. Further, if you get a message asking if you want to do additional services like a telephone call that message is automatically generated by the website and is not sent from me. I, like most of the experts in the Legal categories, do not do telephone calls due to issues with State Bar rules and other concerns.
Unfortunately, yes. To the extent that the SBA loan was guaranteed and paid by the federal government then the SSA funds can be garnished.
However, you can appeal the garnishment by proving that if it is allowed to continue it will cause an economic hardship. This is reasonably easy to prove if it is an SSI payment (based on disability and need).
I understand they have recently changed the form numbers for the appeal of SSI and the link I have for the form doesn't seem to point to a valid page so what I would suggest is going to the local Social Security office and asking them for the form to appeal. That way you are sure you have the most current form.
When you appeal you will want to provide them with as much information on your expenses each month as possible. Receipts are best as well as an itemized list and you will want to go as far back as you can.
Expenses include fixed living expenses such as food and clothing, rent, mortgage payments, maintenance, utilities, any transportation, necessary household help, insurance, taxes, the portions of any medical, hospitalization and other similar expenses not covered by insurance, and expenses for the support of others for whom the person is responsible (ex. children).
Some people also include miscellaneous expenses that are a part of your everyday lifestyle such as cable and internet, newspaper, hairdresser, pet maintenance, entertainment, charitable donations, etc. I usually did not advise my clients to include pet maintenance unless the pets were service animals or the amount was minimal nor to include entertainment unless it was also minimal. The same with charitable donations. However, many believe these should be listed so it is a matter of choice and preference.