Can My Retirement Income Be Garnished?

can retirement income be garnished

Most retirees ask me "Can my retirement income be garnished?"

For the most part, the answer is NO when you are dealing with unsecured debts, such as:

  • Credit Cards
  • Personal Loans
  • Medical Bills
  • Store Cards
  • Etc.

However, if you have delinquent taxes or other secured debts, you should definitly check with your tax advisor or attorney.

If you have accumulated too much unsecured debt then your RETIREMENT INCOME IS EXEMPT FROM GARNISHMENT! According the the federal Trade Commission, not only is your retirement income exempt, so are:

  • Social Security  Benefits
  • Supplemental Security Income (SSI)
  • Veteran's Benefits
  • Civil Service and Federal Retirement and Disablility Benefits
  • Military Annuities and Survivor Benefits
  • Student Assistance
  • Railroad Retirement Benefits
  • Merchant Seaman Wages
  • Longshoremen's and Harbor Workers' Death and Disability Benefits
  • Foreign Service retirement and Disability Benefits
  • Federal Emergency management Agency Federal Disaster Assistance

Can a creditor garnish my bank account to get at my retirement income?

Sometimes they can.  It's extremely important to NEVER CO-MINGLE FUNDS from retirement sources with any EARNED INCOME your bank account!

Let's say you are retired, but working a part-time job to make ends meet.  If a creditor is awarded a judgment (and this would be only after you had received a SUMMONS), and you have CO-MINGLED your funds, your bank may be forced to FREEZE YOUR ACCOUNT!

It is a very good idea to keep separate accounts (and I recommend SEPERATE BANKS just to be safe) for income from your part-time job.  Or, you could always just CASH YOUR PART-TIME CHECK to be safe.

If you are receiving calls from collectors, we can help!

If you have delinquent, unsecured debts, we may be able to negotiate a reduced settlement by up to 50% or more! Click on the following link for more information -->

can my social security be garnished


Tags: federal trade commission, exempt income, garnishment