Facts

• If a creditor sues you for an unpaid credit card debt and is awarded a judgment, in some states that gives it the legal right to garnish your income. Social Security checks, however, are immune from garnishment by private creditors, such as credit card companies or collection agencies.
  
  

Time Frame

• Even though a creditor cannot garnish your Social Security, it can still sue you. A creditor who wishes to sue must due so before the expiration of the statute of limitations for debt collection in your state. If it does not, you can have the lawsuit dismissed.
  
  

Considerations

• If an original creditor or collection agency succeeds in being awarded a judgment against you, it may attempt to seize your bank accounts using a court-ordered bank levy. The creditor may not, however, legally withdraw Social Security funds from your bank account.
  
  

Effects

• It is illegal for a collection agency to threaten to garnish your Social Security checks just to frighten you into paying the debt. If this occurs, you may sue the creditor in federal or state court for violating the Fair Debt Collections Practices Act.
  
  

Warning

• If you file for Chapter 13 bankruptcy due to your credit card debt, your Social Security checks will be considered part of your income when structuring your repayment plan. In this way you will be legally obligated to use at least a portion of your Social Security income to pay your credit card debt.