Let me make it clear about Can My Retirement Pay and Social Security Be Garnished?
First, They See You in Court
Here’s exactly how garnishing works: A creditor—let’s call him Mr. Potter—hauls you to, state, the Bedford Falls Courthouse and wins a judgment against you. Why don’t we call you George. We’re guessing there are many fans regarding the movie It is an excellent life out here.
Key Takeaways
- The U.S. Treasury can garnish your Social Security advantages for unpaid debts such as straight back taxes, kid or spousal help, or a federal education loan that is in default.
- A court order is not required to garnish your benefits if you owe money to the IRS.
- You’ll have actually to pay out 15% of the Social Security for back taxes and up to 65% for child or alimony help owed. Read more