People living on Social Security benefits all over the United States are asking..."Can Social Security be garnished?" "Can a debt collector take your Social Security benefits?"
Debt collectors are famous for calling you at home (or at work, which is against the Fair Debt Collection Practices Act), and making threats. "If you don't pay your bill, we're going to get a court order and garnish part of your Social Security and levy your bank accounts." People wonder..."can they really do that?"
The answer is no! A creditor can't garnish your Social Security benefits. As for your bank accounts, it all depends. My advice to you is - be very careful. When a creditor attempts to collect on a debt you owe them, after they have pushed you around and bullied you into paying them, their next step is to sue you if you are financially unable to pay them.
Out of your Control -
There are many circumstances that occur which are out of our control that place us in this situation, especially if you are a senior. Creditors and debt collectors love to attack seniors because they believe seniors are weak, easily persuaded, easy to push around and lack knowledge of the law.
Whether it is because of a divorce, death of a spouse or health issues, the fact remains that it happens to the best of us and often it is not by choice but by circumstances. As we get older we find ourselves incurring more medical bills and many times we have difficult decisions to make - do we eat or do we get the medicine we need?
We find ourselves stuck between a rock and a hard place, especially since we haven't received a cost of living increase in our Social Security benefits for the past two years. Our government states the reason for this is that the cost of living hasn't gone up in the past two years. Yet every where you look the cost of living has increased dramatically.
If you are one of the lucky ones and don't have medical bills, you still have to make a choice between buying food or starving, paying your mortgage or rent and utilities or being homeless and trying to pay back a debt which you simply can't do. These are not easy decisions to make.
Creditors go After a Judgment -
If and when the creditor obtains a judgment for the debt, the next course of action is to either garnish part of your income or put a levy on your bank accounts, or both. Debt collectors are banking on you not knowing your legal rights when it comes to your Social Security benefits.
If you are a "Baby Boomer" or older and worked most of your life, you paid your Social Security taxes. That money is yours and you are entitled to every penny of it. So why not protect what is legally yours. That's why you need to read on.
Federal Law and Debt Collectors -
Under federal law, a creditor may not touch your Social Security benefits. There are only a few exceptions. If you owe the IRS money, if you owe child support, and/or if you owe alimony. Other than these exceptions, your Social Security benefits are untouchable by creditors and debt collectors.
Beware of Opening other Bank Accounts or Mingling Funds -
Now for the catch - as long as your funds are only in a simple or general checking account or savings account, they are safe. While Social Security benefits are always exempt from creditors and debt collectors, if the unspent funds are mingled with other accounts such as a savings account from a pension plan or retirement fund, they'll lose their protected status.
Keep in mind that whether you have a general checking account, a savings account or both, if the funds are solely Social Security benefits that have accumulated in an account, the funds are protected by law.
But if on the other hand you are mingling your left over Social Security benefits with your pension plan savings account or retirement fund, I suggest you keep accurate records and be extremely careful.
You may even want to contact a Tax attorney who can advise you on how to protect your assets from creditors.
Become your own Advocate -
If a creditor or debt collector tries to sue you for monies owed or threatens you in any manner, let them know that you are very aware of the law regarding your Social Security benefits and that you are protected by federal law.
Stick buy your guns and be your own best advocate. Believe me they will be shocked to find out that you are fully aware of this law. They will soon back off. Although they may continue to harass you on down the road, don't let them scare or upset you...you are protected!
Stop the Harassing Calls -
If a creditor or debt collector persistently calls you on the phone and harasses you, let them know that they are breaking the Fair Debt Collection Practices Act, and that if they need to communicate with you in the future, they must do so in writing and stop calling you.
Be advised that by law you must write the creditor or debt collector and tell them that the only form of communication you will receive and accept from them must be in writing.
Legally you do not have to accept their phone calls and can simply hang up on them. Although some creditors and debt collectors will respect your request over the phone, it is always best to do it in writing and keep a copy for your records.
Your Bank will help you -
Proving that the money in your checking or savings accounts are solely acquired by your Social Security benefits may be difficult if you are sued. Keep in mind that your bank is there to help you and remember your Social Security benefits are protected by law. I just can't repeat that enough.
All you have to do is go to your bank and let them know what's going on. Be honest with them and tell them you need your past bank statements to date, showing the dates and amounts of your Social Security deposits.
If you have put some of that money into a simple or general savings account, be sure to obtain those statement as well. The bank will be happy to give them to you.
Contact the Social Security Administration -
If you need back statements of your benefits, you can contact the Social Security Administration either by phone or online. They won't hesitate to assist you. If fact, they will help protect your benefits and provide you with additional information which you can obtain either on the Internet or through the mail.
In summary, knowledge is the beginning of wisdom.
You can read about the Fair Debt Collection Practices Act at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf.
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CLAIMING YOUR EX-SPOUSE'S SOCIAL SECURITY BENEFITS -
Understanding Social Security Benefits
During the divorce process you and your spouse divide all of your property and go your separate ways. You don't expect to ever look back or even consider trying to get anything out of that past marriage once the Divorce Decree is finalized.
Understanding Social Security Benefits
During the divorce process you and your spouse divide all of your property and go your separate ways. You don't expect to ever look back or even consider trying to get anything out of that past marriage once the Divorce Decree is finalized.
At some point down the road, usually when we get older, we either decide to retire or we become disabled and unable to work. This leads us straight to the Social Security Administration to file for benefits we contributed to during our entire working lifetime.
Unless you already knew about it, you wouldn't think that you could actually claim part of your ex-spouse's Social Security benefits. Well the truth is that you can, but there are some stipulations. This article is designed to help you understand some of the Social Security benefits we're all entitled to receive and to give you some insight on what benefits you qualify to receive.
How to Become Eligible for Social Security Benefits
According to the United States Social Security Administration, there are more than a dozen types of benefits paid under Social Security programs and these programs can be very difficult to comprehend and extremely complicated. Each type of benefit has its own set of eligibility rules and benefit structures.
One would think that income matters when it comes to claiming Social Security benefits. However, according to the Social Security Administration, it doesn't. The Social Security Administration states that an individual's income has no direct bearing on his or her eligibility for any type of benefit; although this is a contradiction in terms because the amount you receive is based on the amount you earned and the taxes you paid into Social Security over your working lifetime.
As you work, you pay taxes and earn what is called Social Security "Credits." In 2011, you earn one credit for each $1,120.00 in earnings to a maximum of four credits per year. Most people need at least 40 credits, which is 10 years of work, to qualify for benefits.
These statistics are directly from the Social Security Administration. So you can see how this becomes a contradiction and how many people become confused when trying to figure out exactly what benefits they qualify to receive.
Retirement Age
As of the year 2011, if you were born from 1943 to 1960, the age of full retirement benefits are payable increases gradually to age 67. If you were born in 1944 or earlier, you are already eligible for your full Social Security benefit.
It seems that the longer we live, the higher the retirement age goes. This is due to the fact that people are living longer; are more conscientious of their health; and, are taking better care of themselves in general.
It seems that the longer we live, the higher the retirement age goes. This is due to the fact that people are living longer; are more conscientious of their health; and, are taking better care of themselves in general.
Retirement Benefits for Widow's and Widower's
The Social Security Administration states that if you are receiving widow's or widower's benefits, you can switch to your own benefit as early as age 62. This is of course assuming that your benefit is more than your deceased spouse's benefit. In some cases, you may even be able to begin receiving one benefit at a reduced rate or amount and then you can switch to the other benefit at the full rate once you reach full retirement age. This is good news because at least we now know that we do have options.
Benefits for Family Members
A husband or wife can also apply for family benefits if he or she is age 62 or older. Children also qualify if they are age 18 or younger; are between the ages of 18 and 19 and are in school; or, if you have a disabled adult child age 18 or older. Be sure to check with the Social Security Administration for all the details.
Benefits for Survivors
When one spouse dies, their family members are entitled to "Survivor Benefits." You must be age 60 or older; 50 or older and disabled; you can qualify at any age if you are caring for children under the age of 16; or, if you have a disabled child age 18 or order.
Visit the Social Security Administration website at http://www.ssa.gov/ or
http://www.socialsecurity.gov/ for the rest of the qualifications and requirements. It will be well worth your while to check into this type of benefit.
Divorced Spouse Social Security Benefits
If and when you decide to retire at age 62, you are considered by the Social Security Administration as taking "early retirement." When you take early retirement, your benefits are reduced and you will only receive 75% of your full benefit.
To receive a divorce spouse benefit, you must be married for at least 10 years; must be divorced for at least two years; must be age 62 or older; must be unmarried; and, must have low lifetime earnings relative to your ex-spouse's lifetime earnings. Divorced spouse benefits are small in comparison to other Social Security benefits.
Low lifetime earnings is relative to how long you worked, how much money you earned and the amount of Social Security taxes you paid over your lifetime. If your ex-spouse worked longer than you and made more money than you, it is quite likely that you will receive more from Social Security because his benefit amount is larger than your benefit amount.
An example would be if you and your ex-spouse retired and filed for Social Security benefits. Your ex-spouse will receive $1,000.00 a month from Social Security. Your monthly benefit is only $400.00. Social Security will calculate these two amounts and come up with a new monthly benefit for you which could be much more than $400.00.
Divorced Spouse Social Security Disability Benefits
As discussed above, you are eligible to claim your ex-spouse Social Security benefits when you reach age 62 or older. Among the many Social Security programs, there is a program where you can claim your ex-spouse Social Security Disability benefits before you reach age 62. This program is designed for people who are disabled and can no longer work, and thus no longer earn income. You must be age 50 and disabled to qualify.
Understanding Social Security Disability
When you become permanently disabled, it's hard enough knowing that you are no longer physically able to work, let alone wondering how you're going to survive and pay for your medical bills. The good news is that if you worked at least 10 years, you can file for Social Security Disability benefits.
These benefits are based on the number of years you worked and how much you earned over your lifetime prior to becoming disabled. Most people are turned down by the Social Security Administration the first time they apply for their disability benefits. If you are one of those people, don't get discouraged. You will have a much better chance of getting your benefits on the second try if you acquire the services of an attorney who specializes in Social Security Disability.
Don't worry about the attorney's fees, because the attorney's fees will automatically be deducted from your first benefits check, and your first check from Social Security will be a large one because in order to file for Social Security Disability, you must be out of work for one year.
The Social Security Administration will then pay you all of your calculated benefits for an entire year in one benefits check. You will then receive a regular monthly benefits check every month for as long as you are disabled and as long as you still qualify as being disabled.
You don't necessarily need to file for your Social Security Disability benefits prior to filing for your Divorced Spouse Social Security Disability benefits, but it helps. It just eliminates one extra step and makes the process go much quicker.
Applying for Divorced Spouse Benefits, Divorced Spouse Disability Benefits,
and Surviving Divorced Spouse Disability Benefits
and Surviving Divorced Spouse Disability Benefits
When you are ready to file your claim for one of these benefits, you will need to call the Social Security Administration at 1-800-772-1213. When a representative answers the phone, tell him/her that you want to apply for either the Divorced Spouse Social Security benefits, the Divorced Spouse Disability benefits, or the Surviving Divorced Spouse Disability benefits.
You will need to know your deceased spouse's social security number, place of birth, place of death, and the names of his/her father and mother. Don't be discouraged if you don't know or can't remember his/her parents names, you can still proceed with the filing.
The representative will ask you certain questions, including the above information and then schedule a telephone interview with a representative in that department. The representative will mail to you some forms to be completed and mailed back prior to the telephone interview. Check your mail frequently.
Documents You Will Need
You will need "certified copies" of your Marriage License and Divorce Decree. In some cases you may even need the Death Certificate. You can obtain them from your county clerk's office in person or online. If you are obtaining them online, you can usually print out the form, complete it and mail it back or request that the clerk mail the form to you. There is usually a small fee and it's based on a "per page" copying charge and not per document.
In addition, you will probably have to go to two different departments - one for the Marriage License, and one for the Divorce Decree.
Once you get the certified copies, mail them back to the Social Security representative, along with his/her form. Be sure to mail these documents by certified mail, return receipt requested, in case they get lost in the mail. The Social Security representative will return the documents to you.
The process may take a bit of time, so be cooperative and patient.
DISCLAIMER:
The purpose of this article is to give you a general understanding of some of the types of programs the Social Security Administration offers individuals and to help you understand how they work and what you may be eligible to receive. I am not a representative of the Social Security Administration.
The information provided in this article is based on information which is available to everyone by the Social Security Administration and can be obtained by going to their website at: http://www.ssa.gov/, or http://www.socialsecurity.gov/. You can also download the following booklet from their website: "Social Security - Understanding the Benefits 2011." It is free.
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