[blindlaw] Are Disability Benefits Judgment Proof?

[Kathleen Hagen]

My experience in this regard has been helping clients with past due student 
loans, or clients with social security overpayments.

Federal agencies can attach some of your benefits.  If you're getting SSI 
only, for example, which is based on income, not on past work experience, up 
to 10 percent or $750, whichever comes first, is attachable to collect 
student loans.  I believe the case, a supreme court case, is Walton vs. 
Barnhart, decided by the Supremes in 2002.  Sorry, I don't have the site to 
hand.

The SSA, if you are assessed with an overpayment, can seize your IRS tax 
return, if you have one.  In fact, you won't even see it.  It will go right 
to SSA, or at least the portion necessary to cover their losses.

Sometimes collection agencies threaten debtors by saying they can "take 
their benefits away to pay a debt."  This isn't true.  At least not with 
SSI, and I think not for SSDI either.  However, they can garnish your wages, 
which, by the way, SSA can do as well to get back an overpayment.

That's the extent of my knowledge.  I learn something new every time I have 
a legal problem to solve in this area.  Right now I know just enough to be 
dangerous.
Kathy Hagen
----- Original Message ----- 
From: "Ray Wayne" <RWayne1 at nyc.rr.com>
To: "NFBnet Blind Law Mailing List" <blindlaw at nfbnet.org>
Sent: Saturday, January 20, 2007 1:03 AM
Subject: [blindlaw] Are Disability Benefits Judgment Proof?


Does anyone know of any statutory or regulatory provision addressing whether 
SSI or SSDI benefits can be attached or otherwise reached by anyone who has 
obtained a judgment against the person receiving these benefits?  Is this a 
matter of federal law or state law?
Thanks.
Ray Wayne


--------------------------------------------------------------------------------


> _______________________________________________
> blindlaw mailing list
> blindlaw at nfbnet.org
> http://www.nfbnet.org/mailman/listinfo/blindlaw
>