Disability Law Claims Blog

Dept. of Treasury May Be Permitted to Garnish Disability Benefits

In most cases, creditors are not permitted to garnish Social Security retirement benefits or Social Security disability checks to pay the debts owed to them. The rules can change when a federal government agency is the creditor, meaning some disability benefit recipients who owe money to the government may find themselves in a devastating financial situation.

The Wall Street Journal reports the U.S. Dept. of Treasury presently withholds the benefits of more than 3 million Social Security recipients in order to repay debts owed to the federal government. These debts may include defaulted student loans, unpaid income taxes, and small business loans.

Until recently, the government could not collect debts that were 10 years old. The 2008 Farm Bill changed that, and the government is now permitted to garnish benefit payments in some cases. The Treasury can now withhold up to 15% of Social Security Administration (SSA) benefits for recipients who receive more than $750 per month. If the debt is tax-related, the government does not have to follow the $750 monthly minimum guideline.

While the debts owed to the government should be repaid, it is worth noting that  these garnishments are likely to hurt many elderly and disabled individuals who rely on Social Security disability benefits programs in order to make a living.

If you have encountered problems in obtaining your disability benefits, you may consider contacting a disability benefits attorney, who can walk you through the process of applying for SSA benefits.

Fort Lauderdale, Florida disability lawyers, LaVan & Neidenberg, represent over 5000 disability claimants. Our disability attorneys have experience with cross examining agency-appointed medical and vocational experts and take time when speaking with you about your disability claim. Call us today at 1-888-234-5758 for a FREE legal consultation. There is NO OBLIGATION to hire our firm and there are NO FEES unless one of our trained disability lawyers wins your case.