Can I have my social security taken away if I owe a debt?

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Can I have my social security taken away if I owe a debt?

I found out I owe on a payday loan from almost 5 years ago. Can I be prosecuted for not paying?

Asked on December 20, 2011 under Bankruptcy Law, Minnesota

Answers:

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

Answered 12 years ago | Contributor

First of all, Social Security benefits cannot be "garnished" (i.e. seized) for a payday loan; they are "exempt" funds. Secondly, unless you committed some type of fraud in obtaining the funds, for example you lied on your application or took the money with no intention of paying it back, this is not a criminal matter. In this day and age people do not go to jail for non-payment of a debt.

Bottom line, while you still may owe the money and could potentially be sued in civil court, both you and your social security benefits are safe.


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