Garnishment of Benefits

Under current law, Social Security benefits cannot be garnished to repay private debts, either secured or unsecured. Secured debts include loans like private mortgages. Unsecured debts include money owed to credit card companies. However, it is permissible for the federal government to reduce Social Security benefits to repay any federal debt. This includes outstanding student loans and Federal Housing Administration loans. It also applies to overpayments for government assistance or tax debts. Garnishment of Social Security benefits is also permissible to collect child support, alimony, and victim restitution. Up to $9,000 annually in benefits is protected from all forms of garnishment. 

Social Security benefits are fundamental to the financial security of millions of individuals. Their reduction could lead to impoverishment.