1619. Past Debts of Beneficiaries

1619.1 Can benefits be seized by creditors?

In order to assure an income for a beneficiary's current needs, Section 207 of the Social Security Act specifically exempts benefits from seizure by creditors. However, there are some exceptions.

1619.2 What are the exceptions?

SSA may garnish benefits for the legal enforcement of providing child support and alimony as permitted under section 459 of the Social Security Act, and the IRS may levy for taxes owed. In addition, SSA may seek refund of a Social Security or SSI overpayment.

1619.3 Should representative payees use benefits to cover bills incurred before the payee began receiving the payments?

A representative payee is not required to use benefits to pay bills incurred by a beneficiary before the first month that benefits are paid to the representative payee. However, a representative payee may do so if the beneficiary's current and reasonably foreseeable needs are met.

1619.4 What if the beneficiary owes a debt to the representative payee?

If the debt is owed to the representative payee, approval must be obtained from Social Security prior to using benefits for self-reimbursement.

1619.5 Where can further information on payment of past debts be obtained?

Questions concerning payment of past debts should be referred to the local Social Security office.

Last Revised: Feb. 2, 2007