If you are the beneficiary of a disability claim such as SSI, SSDI, Veteran’s disability pensions, or any other type of disability payment that is paid to you by the Federal government or an employer, you should know that your monthly benefits are considered garnishment exceptions. Many people who depend on these funds to live are unaware that this type of income is judgment proof. Some are even struck with terror when they hear the word garnishment mentioned, for they fear that a garnishment may someday happen to them.
How Not to Handle the Situation
So keen are some individuals on avoiding garnishment that when it does occur, they ignore the notice to appear in court. They do not realize that when they fail to appear, their creditor will win via a default judgment. This judgment is good for several years, and if financial circumstances for these consumers change for the better, creditors who win by default can pop back into their life and demand payment for a dated judgment.
Responding to a creditor’s lawsuit for wage garnishment by attending the court appearance and proving to the judge why you should be granted wage garnishment exemptions is the only way to stay out of trouble with garnishments, especially if you have little money and few assets.
What Are These Exemptions?
There are several garnishment exemptions when someone has a valid disability claim. If you receive any of these payments, their amount cannot be garnished most of the time. These include:
- Disability payments granted and paid by your state of residence.
- Disability payments granted and paid by any form of private disability insurance.
- Supplemental Security Income payments.
- Social Security Disability Insurance payments.
The only exceptions to the above that are subject to garnishment are:
- Any delinquent Federal taxes you may owe to the US government.
- Current and past due child support payments, with some exceptions.
The key to garnishment exemptions is knowing what to do, and how to do it. All of the 50 states that make up America each have their own laws regarding garnishment exemptions and disability payments. A particular state’s Attorney General as well as the state’s Consumer Protection Division governs the information for each state.
Let an Experienced Debt Settlement Attorney Help You
Are you concerned about garnishment exemptions? The services of a lawyer well versed in the laws for these exemptions can take care of your case and set your mind at ease concerning any sort of garnishment as well.