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Section 459 of the Social Security Act (42 U.S.C. 659) permits Social Security to withhold current and continuing Social Security payments to enforce your legal obligation to pay child support, alimony, or restitution.
Filing bankruptcy will stop the garnishment process immediately. Once you file, most employers will stop the garnishment the same day they get a case number. The creditor also has to stop the same day you file. If any money does get garnished after the date you file, it has to promptly be returned to you.
Your benefits may also be garnished in response to Court Ordered Victims Restitution. SSI payments cannot be levied or garnished.
The bad news is, if you are disabled and owe back taxes, the IRS can garnish 15% of your monthly SSDI payments to pay back the debt owed to them. However, the good news is you wont see your payments lower all of a sudden. The IRS will issue several letters before garnishment.
Some sources of income are considered protected in account garnishment, including: Social Security, and other government benefits or payments. Funds received for child support or alimony (spousal support) Workers compensation payments.
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The garnishment amount is limited to 25% of your disposable earnings for that week (whats left after mandatory deductions) or the amount by which your disposable earnings for that week exceed 30 times the federal minimum hourly wage, whichever is less. (15 U.S.C. 1673).
If you receive SSI, your SSI payments are not included as income when calculating garnishment. This means that with no other sources of income, the court must calculate garnishment based off $0 of weekly income. That means they cannot garnish any money from your wages.
Can a debt collector take my federal benefits, like Social Security or VA payments? Generally no, debt collectors arent allowed to take money you receive from Social Security or VA directly from your bank account or prepaid card. Before that is possible, they have to take legal action and youll be notified.

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