Are SSD benefits safe from debt collectors?

It wasn't all that long ago that many Americans found themselves in dire financial straits thanks to the economic downturn dubbed "the Great Recession."

Across the nation -- including right here in Texas -- we saw record foreclosures, declining home values, high unemployment and huge stock market losses.

Fortunately, the economy now appears to be on the mend and many people's financial fortunes have improved considerably. However, it's important to understand that there are thousands of people who are still feeling the effects of the recession or who have encountered money issues in the post-recession era.

While the reality of being hounded by debt collectors is undoubtedly frightening for these people, consider how much more frightening it is for those people whose disability has left them unable to work and worried about whether these debt collectors can come after their much-needed Social Security benefits.

Fortunately, legal experts indicate that these fears of debt collectors seizing either Supplemental Security Income benefits or Social Security disability benefits while certainly not unfounded may be somewhat overblown.

Supplemental Security Income: Those disabled individuals whose work history precludes them from eligibility for SSD benefits may still be able to secure much-needed financial assistance via SSI benefits.

Legal experts indicate that the law precludes any judgment creditor (even the federal government) from garnishing SSI benefits.  

Social Security Disability: When it comes to those disabled individuals who receive SSD benefits, the situation is perhaps somewhat more complicated concerning debt collection.

Legal experts indicate that the only entity able to garnish SSD benefits is the federal government, which can come after you for things like overdue federal student loans, unpaid child support, overpayments by government agencies and taxes owed. All other judgment creditors, however, are expressly prohibited from garnishing SSD benefits.

It's clear then that those receiving much-needed SSI benefits or SSD benefits do have considerable protection from debt collectors.

If your disability has left you unable to work and unable to secure SSI benefits or SSD benefits despite your best efforts, you should strongly consider speaking with an experienced legal professional.

Source: Credit.com, "Can a debt collector come after my Social Security?" Gerri Detweiler, May 23, 2014