Can a pension be garnished for credit card debt?
The quick answer is that your social security income cannot be garnished at the source, and most pensions are exempt from garnishment too.
You would first have to be sued, and a judgment entered in court, before there is any risk to your money from a debt collector..
Can a creditor take my retirement?
Plans set up under the Employee Retirement Income Security Act (ERISA), like 401(k)s, are generally protected from judgment creditors.
What type of federal benefits Cannot be garnished?
The federal benefits that are exempt from garnishment include: Social Security Benefits. Supplemental Security Income (SSI) Benefits. Veterans’ Benefits.
Can a credit card company garnish Social Security income?
Private debt collectors, such as credit card companies and banks, can’t garnish your Social Security benefits. Section 207 of the Social Security Act prohibits debt collectors or a bankruptcy court from dipping into your bank account to take Social Security money for purposes of paying off what you owe.
Can my retirement income be garnished?
Your retirement income, like your monthly Social Security check, cannot get garnished for some debts. However, you can lose some of your benefits for other types of debts.
Can they garnish retirement income?
In general, pension income enjoys the same protection as Social Security benefits — off limits to most creditors, except for government debts and child support. And pension income is protected from garnishments before it’s given to you, but not after you receive it.