Are You Losing Half Your Social Security Checks? Here’s What to Do

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If you’re receiving Social Security benefits, you might be aware that a significant portion of your monthly checks can be diverted to cover unpaid debts and taxes through a process called garnishment. This can be devastating for seniors and disabled individuals living on a fixed income. Losing half your Social Security checks can lead to poverty, financial stress, and even homelessness. According to the National Council on Aging, nearly 70% of seniors live on a fixed income, and even small deductions can be a significant burden [1].

Garnishment can occur for a range of reasons, including unpaid taxes, child support, and federal student loans. Creditor harassment can be stressful and overwhelming, making it difficult to navigate the complex process of stopping garnishment. If you’re facing debt collection and are concerned about losing half your Social Security checks, it’s essential to take proactive steps to address the issue.

Garnishment and Social Security: The Law

Garnishment of Social Security benefits is governed by federal law, including the Social Security Act and the Consumer Credit Protection Act. The law allows certain creditors, including banks and the IRS, to demand up to 15% of your Social Security benefits as payment for debts. However, this percentage may increase to 25% or 50% if you’re behind on child support payments [2].

Common Reasons for Garnishment of Social Security Benefits

Unpaid taxes are a leading cause of Social Security garnishment, with the IRS auctioning off unpaid tax debts and examining bank accounts, including Social Security benefits. Unpaid child support and student loans can also lead to garnishment, even if you’re disabled or retired.

Stopping Garnishment: Your Options

Before taking action, it’s essential to understand your rights and options. While the Social Security Administration (SSA) is required by law to inform you of garnishment, it’s estimated that over 1 million seniors didn’t know they were subject to garnishment each year between 2002 and 2012.

Fixing Your Financial Situation and Stopping Garnishment

Once you’ve taken the first steps, consider seeking professional help from a debt counselor, credit counselor, or tax professional. They can guide you through the complex process of stopping garnishment, negotiating with creditors, and implementing a payment plan that suits your financial situation. They can also represent you in court if necessary [3]

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