If I’m on social security and I took out several payday type loans onliine but can’t repay them, can my bnk account be garnished?

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If I’m on social security and I took out several payday type loans onliine but can’t repay them, can my bnk account be garnished?

My social security is direct deposited.

Asked on January 16, 2013 under Bankruptcy Law, Oregon

Answers:

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

Answered 8 years ago | Contributor

Social Security benefits can be garnished, however only in a few specific circumstances. According to the Social Security Administration, benefits may only be garnished to enforce child and/or alimony obligations, to pay federal tax and debts owed to the IRS, and to pay debts owed to federal agencies. All other creditors are prohibited from garnishing such benefits; they are "exempt" from collection activities. Accordingly, recipients are protected from credit card companies, finance companies, auto lenders and other lenders.

Further, if exempt funds are paid into your bank account by direct deposit, they cannot be seized (however other money that is non-exempt can be). You should be aware however, that only 2 months worth of benefits are so protected. Also, you should notd transfer benefits to another account or else the protection is void.


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