Get your Social Security deposited into your bank account each month?
If so, you don’t need to worry about a creditor snatching it.
Under federal law, your bank is required to protect those funds from the reach of creditors looking to collect on money judgments.
The rules to qualify are simple:
- Benefits were directly deposited to your account
- Social Security paid the funds to you
- Two month’s worth of payments are protected
Under normal circumstances, a creditor with a judgment against you can get an order to have your bank turn over money from your account. Though Social Security is ordinarily off-limits, proving that the money in your account came from the Social Security Administration has long been a tough chore.
In the past, you could have your money frozen for weeks, or longer, while you sought to trace Social Security into the levied account.
The bank must give you access to the two months worth of payments, though you may be able to claim a larger exemption by using your state laws.
At the very least, you have money to eat and buy gas while you sort out things.