Are Creditors Able To Take My SSDI?

Individuals who are unable to work to provide for themselves and their families typically can be approved for Social Security Disability Insurance or SSDI. This can provide an invaluable benefit to them in sustaining their livelihood. What happens when creditors need to satisfy past debts? What if an auto loan is now delinquent due to a disability? In most cases, your SSDI benefits are off-limits to creditors. Read further to help to understand the details.

We are happy to provide a free strategy session to answer your questions regarding SSDI and your creditors. Call us today at (315) 500-6425 to get started.

What Does It Mean To My SSDI Benefits If I Have a Garnishment?

Garnishments by creditors such as credit card companies, mortgage lenders, and auto financing companies can not touch your SSDI benefits in most cases. This is because garnishments are typically associated with employment income, not benefits, spousal support, and the like.

This does not always include, however, payments ordered such as child support, court-ordered restitution, unpaid federal taxes, alimony, or in some cases, federal student loans. Where applicable, if you are required to pay these, a garnishment of your benefits may take place in order to fulfill your obligation.

What Else Should I Know About Garnishments?

Banks must conduct an investigation before freezing SSDI benefits in compliance with a garnishment order. A fee is generally associated with completing this investigation, and each bank will have a different fee schedule. Legal representation can be of great benefit in protecting your SSDI. In some cases, creditors will still attempt to garnish your benefit to fulfill your debts. This also gets especially confusing if you have comingled deposits in an account. If you are receiving income from multiple sources in the same account, and one of them is your SSDI benefit, there may need to be some extra protection put into place in order to ensure creditors aren’t touching your benefit amount.

How Can a Lawyer Help?

Creditors will still likely pursue you in an attempt to collect the debt owed. Just because your benefits are protected from creditors doesn’t mean your debts will disappear. This can hurt your credit, but you aren’t typically susceptible to a lawsuit as there is no way for them to collect the debt.

Our team of highly experienced lawyers is ready to assist you with your specific case and SSDI benefits. They have helped several people just like you in the past to untangle the facts and fulfill the requirements of what is owed by you while protecting your SSDI benefit. Contact us at (315) 500-6425 regarding your specific case and how we can help.