At Lawrence & Associates, many of our clients come to us with garnishments already in place. Those clients are usually at the point of desperation, because a garnishment is the death sentence for the careful balance we strike with our creditors. Suddenly, instead of staying one step ahead of the bills, we are one step behind and losing more ground every day.

What Can Be Garnished?

When a judgment results in a garnishment, it’s important to know what can be garnished and what cannot. Everyone knows that a paycheck or bank account can be garnished, and that the IRS can withhold a tax refund to repay past due income taxes from a prior year. What many Northern Kentucky residents don’t realize is that social security disability checks can also be garnished under special circumstances.

Private Debt Collectors Can’t Garnish Disability Benefits But They Can Go After Bank Accounts

First, let’s start with private – as opposed to government – debts. Generally, private creditors such as credit cards or medical providers (think Capital One or St. Elizabeth Hospital) cannot garnish social security disability benefits. They can, however, garnish bank accounts that hold these benefits if the benefits are deposited by check or if the bank that holds the disability funds is also the bank you owe money to.

The U.S. Government Can Garnish a Percentage Your Social Security Disability Benefits

The amount of the garnishment depends on what kind of debt you owe. If you owe money to the IRS for back due taxes, the IRS can garnish up to 15% of your disability check. If you owe money for student loans, the government can also garnish up to 15%, although it cannot touch the first $750 of disability payments. If you owe child support or spousal support, your social security disability benefits could be garnished by as much as 50% to 65%!

Chapter 13 Bankruptcy Stops Private and Government Garnishment of Your Social Security Disability Benefits

In Northern Kentucky, a Chapter 13 bankruptcy is a good way around a social security disability garnishment. Even the government has to obey the automatic stay, which is the bankruptcy court’s order that requires all creditors to stop collecting their debts once a bankruptcy is filed. In a Chapter 13 bankruptcy, you can pay off non-dischargeable debts – such as student loans, taxes, or child support – over a three to five year period without those debts incurring interest or penalties in the meantime.

Contact Us (859.371.5997) for a Free Consultation

Relevant Posts

• Disability Explained Series
• Bankruptcy Explained Series

Lawrence & Associates helps our Greater Cincinnati clients who have become disabled as a result of injury, disease, or age get the benefits they are owed by the Social Security Administration. It is important to be sure that you file for all available benefits when you first file a claim with the Social Security Administration, and hiring a knowledgeable Northern Kentucky law firm is the best way to ensure you are getting everything you deserve.

Retired Worker Benefits

The Social Security Administration pays retired worker benefits to any Greater Cincinnati or Northern Kentucky citizens that worked for long enough to be covered by social security and who have reached at least age 62 (for partial benefits) or age 70 (for full benefits).  These benefits are also available to the minor children of a retired worker if the child is either a) under the age of eighteen, b) under the age of nineteen and in high school, or c) disabled before age twenty-two.  Finally, these benefits are available to the spouse of a retired worker if the spouse is age 62, if the spouse has a minor child in his or her care, or if the marriage lasted at least ten years (in the case of a former spouse).

Survivor Benefits

The Social Security Administration also pays survivor benefits to any Greater Cincinnati or Northern Kentucky citizens that is the child, widow(er), or parent of a deceased worker.  A child applying for these benefits must meet one of the three criteria for a minor child described in the paragraph above.  A parent must be at least age 62 and must be able to prove that he or she relied on the deceased worker for support.  A widow(er) must be either a) at least 62 years old, b) at least 50 years old and disabled themselves, or c) have a child under age 16 or a disabled child in his or her care.

Disabled Worker Benefits

The most common type of Social Security benefit to require an attorney’s services is the Disabled Worker Benefit, also known as SSDI or DIB.  However, also be aware that the child or spouse of a disabled worker can get benefits under this chapter so long as they meet the criteria described above.
>> More About Disabled Work Benefits/SSDI/DIB Application Process

Supplemental Security Income Benefits

The Social Security Administration offers benefits under Supplemental Security Income, also known as SSI.  This is needs based income for the aged, blind, or disabled. Although any Greater Cincinnati or Northern Kentucky citizen is eligible to apply for this, it is commonly seen hand-in-hand with Social Security Disability benefits. In order to get SSI, a single individual cannot have more than $2,000 in resources, and a married individual cannot have more than $3,000 in resources.
>> Social Security Disability Overview

A Strong Advocate For Your Right to Recover Benefits

Lawrence & Associates will be your strong advocate in the social security system, standing up for your right to recover the benefits you’ve paid into for so long. The process for filing for social security disability is long and complicated, but with a strong advocate you will have a much higher chance of success. Our Northern Kentucky Social Security Disability attorneys will keep you informed of the progress in your case and return your calls as soon as possible. We hope you’ll choose us to represent you!

Other Posts in this Series

[posts type=”category” name=”Disability Explained Series” limit=”4″ date=”m-d-Y”]

Contact Us (859.371.5997) for a Free Consultation

The Social Security Administration offers many kinds of benefits. Lawrence & Associates helps our Greater Cincinnati clients who have become disabled as a result of injury, disease, or age get the benefits they are owed by the Social Security Administration. The two most common types of benefits are Social Security Disability Benefits (also called DIB, SSDI or Title II benefits) and Supplemental Security Income (also called SSI or Title XVI benefits). It is important to be sure that you file for all available benefits when you first file a claim with the Social Security Administration, and hiring a knowledgeable Northern Kentucky law firm is the best way to ensure you are getting everything you deserve.

Attorney Fees Don’t Have to be Paid Out of Pocket

It’s important to know that your social security disability attorney does not have to be paid out of pocket for his or her services. Instead, attorneys in Northern Kentucky receive 25% of your back pay from your Social Security award, usually up to a $6,000.00 limit. This is important because it gives the disabled the ability to hire an attorney to maximize their chances of success, and it ensures that the disabled will not owe an attorney money if the claim is not successful for some reason. An attorney can file a petition with the Social Security Administration for more than a $6,000 fee if a claim involves multiple hearings or appeals, but in practice this is rare.

Conditions Eligible for Disability Vary Widely

The types of conditions that are eligible for disability vary widely, and can include anything from cancer to Down’s Syndrome to orthopedic injuries. In the Greater Cincinnati area, the most common reasons to get disability tend to be: back and spinal injuries, vision loss or blindness, diabetic related conditions, loss of use of an arm or leg, anxiety, depression, and arthritis. You cannot get disability if you are still working, even if you are working in a limited capacity or with work restrictions approved by your doctor and employer.

A Strong Advocate For Your Right to Recover Benefits

Lawrence & Associates will be your strong advocate in the social security system, standing up for your right to recover the benefits you’ve paid into for so long. The process for filing for social security disability is long and complicated, but with a strong advocate you will have a much higher chance of success. Our Northern Kentucky Social Security Disability attorneys will keep you informed of the progress in your case and return your calls as soon as possible. We hope you’ll choose us to represent you!

Other Posts in this Series

[posts type=”category” name=”Disability Explained Series” limit=”4″ date=”m-d-Y”]

Contact Us (859.371.5997) for a Free Consultation