If I owe state taxes andthe statehas now placed a lien on my bank account, can it take my SSD benefits?

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If I owe state taxes andthe statehas now placed a lien on my bank account, can it take my SSD benefits?

My social security diability benefits are directly deposited every month into it. Is the state in error in taking this money? What do I do next?

Asked on December 21, 2011 under Bankruptcy Law, New York

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Ordinarily one's social security benefits via a check paid to him or her are exempt from levy by a judgment creditor. The problem that I see concerning your situation with respect to the lien placed on your bank account by the state that you live in for unpaid taxes is that once your social security benefits are placed in a bank account in your name, you lose the exemption from the levy process.

With this in mind, if you do not want all of your social security benefits levied upon, you need to open an entirely new bank account with a different bank and have your social security checks deposited there from now on. Be prepared for the state to continue to follow your assets for collection purposes. Perhaps working out an agreed upon written payment plan with the state is the way to resolve the dilemma that you have.


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