Can a debt be collected from an SSD bank account?

Asked on January 14, 2013 under Bankruptcy Law, Michigan


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Most disability payments, including SSD, are what is known as "exempt" funds. This means that they cannot be seized by a creditor (or debt collector). So if exempt funds are paid into your bank account by direct deposit, they cannot be frozen in your account (however other money that is non-exempt can be). You should be aware however, that only 2 months worth of benefits are protected. Also, don't transfer benefits to another account or else the protection is void.

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