Can retirement and disability benefits be garnished?

No, the creditor cannot garnish your parent's benefits. The court has to prepare the payment plan keeping this source of income aside.

Is it too late now to negotiate with the company and arrange a payment plan? I think the company also won't be interested taking the matter to the court, unless they feel your parents are trying to avoid payments. You can explain the genuine reasons behind non payments and fix up something suitable.

YES!!! They can garnish in certain circumstances. I know I posted this law in another thread, I'll find it...

Ok..still looking for info I have, but this much I know: as of 2004 the SSA decided that social security CAN be garnished. Previously that was only for federal debts and child support, but this now includes certain consumer debts as well. I would seriously advise your parents to call an attorney.

I know every employer has different policies, but some employers retirement benefits can not be touched if they are Erissa qualified which means the benefits are protected by garnishments, bankruptcy trustees can't touch them, etc.

Brownsugar, that is like a 401k or an IRA. It's a whole different thing...You're right, that cannot be garnished. But a SS check CAN.

Finsfan, I thought that a govt. disability check like SSI can not be garnished unless it is for a federal debt like student loans or child support?

Hey fins!! You gave me a ****!! I am seeing stars in daytime.

[color=Red]****Adult term removed - Jason[/color]

That was prior to 2004, now they've changed the law to include other debts. I don't know the specifics, like if that particular debt qualifies, but they should find out.

That is good info. to know. I've been thinking that all debt except for federal couldn't garnish. Thanks. I don't receive SSI, but it may be useful info for the future I can pass onto somebody, someday.

I was just checking some more, and as I said, the law was changed in 2004, but it really looks like MOST garnishments allowed other than federal or alimony would be administrative. Soooooo...It really looks like in this particular case they would not be garnished, but that will not stop the creditor from putting liens on homes and accounts.

sorry Keystrokes, sometimes my excitement gets the best of me..I'm a rather exuberant person, if you haven't figured that out yet!! LOL, hope your head's ok.

I will be careful to comment on this subject again. It's hard to take that some benefits can be actually garnished. They are from the house of the government but unfortunately, they aren't safe either.

These rules change constantly, no one can keep up with them. I don't know how the government does. They probably don't.

This stuff is a pain. It's funny, SSI checks can be garnished for "administration debts"...The list of possibilities are enormous, but it looks like that would mean they used the ssi against a payment somehow.

Betziv, please tell your parents to contact an attorney!

I reviewed the papers that were served and it is a summons and my parents have 20 days to repsond. I have no idea what that means so I think they are going to talk to an attorney. Thanks to everyone that responded so quickly.....

The court has given you 20 days time to prepare your case for the hearing. During this time, you may contact the loan company and set a payment plan with them. If they are willing to work with you, the case will be withdrawn from the court. Your parents should take lawyer's advice and get the strong points in their favor and the company is asked to give reasons. All this will be done to prevent your parents' benefits from being garnished.

I am on SS and SSI...On the promise of a cousin wanting me to let her use my credit cards and she would just give me the money to pay the bill each mo. So, I did. WRONG!! She skiped out I have no clue where she is ..Now Im the one getting all the calls and bills..What is the first steps they will take to collect? The only thing I own is a paid off car...Im scared to Ans. the large amount of calls I have been getting..I don't know what to tell them!. Or should I answer them and tell them I live mo. to mo.and am on SS $284.00 and SSI $359. Should I return their mail unopened so they think I have moved..Im scared to DEATH of it all...I have always paid my bills and on time...Im not trying to get away with anything...I just don't even know if I could save up enough money to go bankrupt "or" even if that can be done ...But, by the end of the Month there is NOOOOO money left. I feel very embarrased about it all..because I am the one who let it happen...So, I know I am the one who owes it!! Please tell me step by step what to expect..Can they take my car?? Can they take my SS and SSI..Sence I never ans.the phone for weeks on end..they have slowed down alot. Will I get a letter saying Im being sued or a Sheriff come to my door? Please any info would be help full.

Im not sure Im doing this right, or Im not looking in the right place for feedback one...I cannot find anything in the posts that fit my questions..On SS and SSI...Please Help...before my phone starts ringing again in the morning..

The only income you have is SS? If that's the case, you can not be garnished for a debt of this kind (consumer debt) anywhere in the US. However, you can have your accounts levvied as a means of collection.

I would answer the phone and talk to the creditors. It would be better to make some arrangements now that you can live with than to have arrangements decided for you in court..And you don't need the ugly black mark that a judgement will give you. Unfortuanately, you are responsible for this debt and will ultimately have to pay it. Good luck, please keep up updated.

My question is....my dad co-signed on a car for me that i was repoed, and i'm fililng bankrupcy now they are threatening to garnish my fathers retirement check, can they do that

a co signer is just as responsible for payment as the person who took out the loan

Quote:

First of all it is not legal.....
and upon that they can not garnish the check because even if they know the account number of your father's current bank account, if your father open a new bank account and submit the check in the bank and cash out all the money then how can they garnish.?

As check payment will be one time not recurring...