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Can retirement and disability benefits be garnished?

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My father was downsized from his job after 36 years and is took early retirement and is only drawing $720 a month in retirement benefits until he turns 62, and my mother has had two strokes and collects disability. The had a loan through Beneficial Finance Co and made payments on time until all of this happened now they are being sued for $12,000. Can they garnish my father's retirement benefits and my mothers disability benfits? Please help




No, the creditor cannot garnish your parent's benefits. The court has to prepare the payment plan keeping this source of income aside.

Is it too late now to negotiate with the company and arrange a payment plan? I think the company also won't be interested taking the matter to the court, unless they feel your parents are trying to avoid payments. You can explain the genuine reasons behind non payments and fix up something suitable.

Sub: #1 posted on Tue, 11/07/2006 - 03:33

keystrokes keystrokes

(Posts: 495 | Credits: 73.33)

YES!!! They can garnish in certain circumstances. I know I posted this law in another thread, I'll find it...

Sub: #2 posted on Tue, 11/07/2006 - 05:19

finsfan13 finsfan13
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Ok..still looking for info I have, but this much I know: as of 2004 the SSA decided that social security CAN be garnished. Previously that was only for federal debts and child support, but this now includes certain consumer debts as well. I would seriously advise your parents to call an attorney.

Sub: #3 posted on Tue, 11/07/2006 - 05:23

finsfan13 finsfan13
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I know every employer has different policies, but some employers retirement benefits can not be touched if they are Erissa qualified which means the benefits are protected by garnishments, bankruptcy trustees can't touch them, etc.

Sub: #4 posted on Tue, 11/07/2006 - 05:25

brownsugar brownsugar

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Brownsugar, that is like a 401k or an IRA. It's a whole different thing...You're right, that cannot be garnished. But a SS check CAN.

Sub: #5 posted on Tue, 11/07/2006 - 05:28

finsfan13 finsfan13
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Finsfan, I thought that a govt. disability check like SSI can not be garnished unless it is for a federal debt like student loans or child support?

Sub: #6 posted on Tue, 11/07/2006 - 05:35

WHEREAMI? WHEREAMI?

(Posts: 5262 | Credits: 731.81)

Hey fins!! You gave me a ****!! I am seeing stars in daytime.

[color=Red]****Adult term removed - Jason[/color]

Sub: #7 posted on Tue, 11/07/2006 - 05:39

keystrokes keystrokes

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That was prior to 2004, now they've changed the law to include other debts. I don't know the specifics, like if that particular debt qualifies, but they should find out.

Sub: #8 posted on Tue, 11/07/2006 - 05:40

finsfan13 finsfan13
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That is good info. to know. I've been thinking that all debt except for federal couldn't garnish. Thanks. I don't receive SSI, but it may be useful info for the future I can pass onto somebody, someday.

Sub: #9 posted on Tue, 11/07/2006 - 05:43

WHEREAMI? WHEREAMI?

(Posts: 5262 | Credits: 731.81)

I was just checking some more, and as I said, the law was changed in 2004, but it really looks like MOST garnishments allowed other than federal or alimony would be administrative. Soooooo...It really looks like in this particular case they would not be garnished, but that will not stop the creditor from putting liens on homes and accounts.

Sub: #10 posted on Tue, 11/07/2006 - 05:50

finsfan13 finsfan13
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