Can a Debt Collector Garnish Retirement Income?
The answer is NO!
First of all, if you fall behind on your credit card or other debt payments, your creditors don't have the right to automatically garnish any sort of income. Before a creditor can get a writ of garnishment, they have a whole set of hurdles to get over.
The creditor will write you multiple harsh letters and call you over and over! They will use many dirty tricks of debt collection to try and collect the debt.
If the collector is unsuccessful in getting you to pay up, then they may decide to file a complaint and you would receive a SUMMONS. If you owe the debt or you decide not to appear in court to fight the summons, your creditor will be awarded a DEFAULT JUDGEMENT adn they can apply for a WRIT OF GARNISHMENT.For a great article about What To Do If You Receive A Summons <--- Click This Link
If your only source of income is from one of the following, they CANNOT GARNISH IT!!!
- Social Security benefits
- Supplemental Security Income (SSI)
- Welfare or public assistance
- Spousal support or child support
- Public or private pensions
- Veterans benefits and/or loans
- Disability proceeds of life insurance policies
- Cash surrender value of life insurance policies
If you deposit your retirement income (pension, Social Security...) together with any other source of income (part-time job...), then THE ENTIRE ACCOUNT COULD BE SUBJECT TO A BANK LEVY!
As long as you DO NOT CO-MINGLE your retirement income with any other source of income, then the retirement income is safe!
If you are struggling to pay off your debt, or know someone who is being threatened with a garnishment, our Debt Settlement team can help you settle your debts for 50% or less that what you owe! Give us a call at 1-877-492-4109 or click this link for a FREE Debt Consultation.