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Answer It depends upon the circumstances under which the garnishment writ was executed. The exemption of account monies is not "automatic", the judgment debtor is responsible for notifying the judgment creditor, the court and the bank of accounts that contain funds that are legally exempted from attachment. If the SS benefits were commingled in the account with non exempt monies the garnishment (levy) is valid. The judgment debtor can file an affidavit with the court where the garnishment writ was granted to have any seized exempted funds returned, but this must be done within the time limit allowed by the laws of the state in which the account is located. If the creditor executed the writ knowing that the funds were exempt and the bank released the funds with that same knowledge, both can be held liable for any financial damage incurred by the judgment debtor due to the invalid levy.

[edited by Ron King]

"Sec. 207. [42 U.S.C. 407] (a) The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law."

The only exceptions allowed to date are for Child Support payments and federal taxes. So, no, SS benefits are NOT subject to garnishment in ANY State of the Union. Furthermore, SS benefits are NOT subject to attachment via any court proceeding. The U.S. Supreme Court has held that Social Security funds deposited into a bank account "retained the quality of moneys' within the purview of section 407[.]" Philpott v. Essex County Welfare Bd., 409 U.S. 413, 93 S.Ct. 590, 34 L.Ed.2d 608 (1973). Courts have also held that the funds remain exempt from legal process even if they are commingled in a bank account with other funds, so long as they are reasonably traceable to Social Security.NCNB Fin. Servs. V. Shumate, 829 F.Supp. 178 (W.D. Va. 1993), affd. 45 F.3d 427, cert. Denied 115 S.Ct. 2616.

If your bank has put a hold on the funds but not delivered them to the court, you can have them reverse the hold and report the funds were not available for attachment. Any fees associated with the improper hold may also be reversed and NSF fees from payees on your account(s) may be demanded from your bank. Your bank is responsible for KNOWING [42 U.S.C. 407] (a) and therefore cannot claim ignorance of the status of your deposits. Liability for compliance with [42 U.S.C. 407] (a) attaches upon acceptance of your deposit.

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Q: What can be done if a creditor garnishes Social Security benefits?
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