Can social security be garnished by a civil judgement? In Okla.?

Answer 1

Social Security & Wage Garnishment



If you are currently struggling to make ends meet with your full salary, how will you meet all of your monthly obligations when a portion of it is withheld; sometimes up to 25%? The prospect of receiving only a portion of your paycheck can feel incredibly stressful, regardless of income, but unfortunately may be a reality if you have unpaid debt. A wage garnishment is a judicial remedy requiring your employer to withhold a portion of your paycheck in order to repay debts or judgments, including those stemming from credit cards, defaulted loans, and delinquent taxes.

Before a portion of your paycheck is withheld, the attorney representing the creditor must follow a defined legal process. Typically, the first step is the entry of a judgment against you. You will be personally served with papers requesting you to appear in court for an alleged debt that is owed. If you fail to appear, the court can issue a default judgment against you. If you go to court you can present your argument to the judge as to why you may not owe the debt, or you may try to reach an agreement with the attorney to settle the debt. If that fails and the court finds that the debt is owed, a judgment will be entered against you. A judgment creates a legal obligation to pay back the debt that is owed. For example, a judgment may result in a lien against your home. This simply means that if you sell your home, the equity proceeds will go directly toward repaying the judgment before you see the proceeds. The judgment will detail the amount owed, attorney and court fees that have been included, and specify the interest rate accruing on the balance. Judgments negatively affect your credit score and stay on your credit report for ten years or more. Many lenders are hesitant to extend credit to people with judgments against them.

If the judgment is not resolved shortly after it is entered against you, the creditor might pursue further collection tactics by issuing a wage garnishment. There is a specified period of time that must pass after a judgment has been entered and before a wage garnishment can be pursued by the creditor. Time periods and enforcement vary by state so it is important to review the procedures of your state. Consult an attorney or your state’s Attorney General’s office for more information regarding state guidelines. To find the Attorney General for your state visit www.naag.org.

The Federal Government has recognized that wage garnishment can pose a particular hardship to families on a fixed income and as a result, there are particular incomes that cannot typically be garnished.

What type of income cannot generally be garnished?
 Social Security benefits
 Unemployment benefits, worker’ compensation, veterans’ benefits
 Disability or retirement pension or annuity
 Life insurance proceeds
 Child support paid to you

*Section 207 of the Social Security Act outlines that Social Security Benefits are not protected if debt is owed to:

• Child support and alimony
• Federal taxes from the Internal Revenue Service (IRS)

Consult individual state laws and/or a legal aid attorney to determine if your income is exempt from wage garnishment. If your income is exempt and is being garnished, send a signed letter along with proof of exemption, to the office that sent the garnishment letter and the creditor’s attorney.

*If you receive a portion of your income from an exempt status, the wage garnishment can still be ordered through your non-exempt income. The Social Security Administration (SSA) can order up to 15% of your disposable pay (money after taxes and health insurance have been withheld) be garnished for one debt. If your wages are currently being garnished, total garnishment cannot exceed 25% of disposable pay.

For more information pertaining to wage garnishment consult a local attorney at legal aid or visit the Social Security Administration website at www.ssa.gov.

Want to learn more? Call us for a no-cost consultation about this and other financial topics.
Toll free: 1.888.354.6332
Debt Counseling Corp. is a not-for-profit organization
providing education, counseling and advocacy to consumers like you.
3033 Expressway Drive North, Hauppauge, NY 11749
A brighter tomorrow… Licensed by the New York State Banking Department

Answer 2

I believe that Federal Agencies are the only ones who can garnish your Disability check. Things like Child Support, Back Taxes and Student Loans. But, I don't think that private creditors can access your disability for garnishment. Check with a professional to be sure. There's always the option of Bankruptcy to stop these creditors from making your life more difficult. You've got enough going on right now, and shouldn't be worried about what the creditors are going to do next!

Answer 3

I do not know about the laws on Oklahoma, but in Nevada, Utah and Washington Social Security can NOT be garnished. However, if you own property they can put a lien on your property and levy your bank accounts.

Answer 4

Social Security cannot be garnished, except for child support, income taxes and other Federal debts. -- in every state.

Answer 5

Social security is usually reguarded as income, any income source can be garnished by a civil judgement....contact a lawyer to get the proper answer for your state and situation