Can My Retirement & Social Security Be Garnished?

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The government can garnish Social Security and retirement benefits.
The government can garnish Social Security and retirement benefits. (Image: Image by Flickr.com, courtesy of lost in translation) (Gordana Adamovic-Mladenovic)

If you are living on the income provided by Social Security or a retirement pension, you may have concerns about a debt collector’s ability to garnish your income to recover a debt. Generally, a private creditor cannot do so, but the government can.

Features

Private creditors, such as credit card companies and collection agencies, are not permitted to garnish Social Security or retirement income. The federal government, however, can.

Function

The government may garnish your Social Security or retirement pay for unpaid taxes, child support or alimony.

Limitations

The Consumer Credit Protection Act states that the amount of any garnishment, including those levied by the federal government, cannot exceed 25 percent of your disposable weekly income.

Considerations

Unlike a private creditor, the government is not required to sue you and obtain a court judgment against you in order to proceed with a garnishment.

Warning

In addition to garnishing your retirement and Social Security checks, the government may also garnish your bank accounts or place a lien against any property that you own.

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