If you have a sufficient number of work credits and a qualifying disability, you may be eligible for Social Security Disability Insurance benefits. While the application process can be complex, these benefits may help you pay living expenses, medical bills and other costs.
While your SSDI benefits may improve your quality of life, you should not forget about your outstanding debt. After all, some of your credits may be able to garnish your SSDI income until you no longer owe them money.
What garnishments are allowable?
You may have credit card bills, medical debt and other expenses you are struggling to pay. Not all creditors may go after SSDI income, though. Generally, your creditors may garnish your SSDI benefits to satisfy the following three debts:
- Unpaid federal student loans
- Unpaid federal income taxes
- Court-ordered child support and spousal support
How much can creditors take from your SSDI payments?
Even if you have an extensive work history and a serious disability, you may find your SSDI benefits to be meager. Your creditors probably cannot garnish all your monthly SSDI income. Typically, the Internal Revenue Service may only take up to 15% for federal student loans and income taxes. The IRS also likely must leave you with at least $750 in SSDI income per month.
Garnishments for court-ordered child support and spousal support may be considerably higher than 15%, with the garnished SSDI income going to both arrears and your current support obligations. Ultimately, if you worry about losing SSDI income to garnishment, it is critical to understand both your rights and your legal options.