SSDI Garnishment Laws

[PAMichael]

I live in Texas but am moving to Pennsylvania in 2 weeks.

I have recently been approved for (sept 2007) SSDI. Less than 30 days after the approval, the Dept of Education is already starting 15% garnishment action, to begin in 12/2007. My question is this: I also owe the IRS. Can they EACH garnish my SSDI for 15% for a total of 30% or is 15% the TOTAL amount of garnishment allowed under the law? I am getting scared because as it is, I can't afford my medical treatments on a 15% garnishment.

Also, do I have any appeal options prior to the 12/2007 garnishment? The blurb at the top of the letter says that my ssdi benefit may be reduced 10/10/2007, but later in the letter it says it will begin "no sooner than 12/2007"

Also, I have looked into Loan Discharge, but, my SSDI approval letter does not state whether my Disability is "total and Permanent". I guess I have to go into their office to determine that part. Thank you in advance for your help!

[Mr. Knowitall]

Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions:

• Section 459 of the Act (42 U.S.C. 659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations;
• Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows benefits to be levied to collect unpaid Federal taxes;
• Section 3402 (P) of the Internal Revenue Code allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year;
• The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and
• The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid.

The letter most likely outlines that you have a time-limited opportunity to contest the amount of the garnishment to the Social Security Administration, on the basis that it causes undue hardship. If not, get in touch with your Social Security office and inquire about the process. If you don't claim hardship now, it will be a lot harder to revisit the garnishment.

[PAMichael]

The letter most likely outlines that you have a time-limited opportunity to contest the amount of the garnishment to the Social Security Administration, on the basis that it causes undue hardship. If not, get in touch with your Social Security office and inquire about the process. If you don't claim hardship now, it will be a lot harder to revisit the garnishment.

The loans are aleady in default and are being handled by Windham Professionals. There is no information in the letter that says I can contest it. I spoke to AES/PHEAA and they told me that I must deal directly with Windham Professionals.

I had entered a "loan rehab" program with Windham 4 months ago and yesterday the AES/PHEAA said that Windham had no authority to say that I wouldn't be garnished while in the rehab program. Now, today, they BOTH say that the $50 monthly payments WILL stop the offset. I am so confusednd believe that they are BOTH lying to me just to get the $50 payment AND the $187 garnishment. :-(

The second question I have is can the D.O.E. garnish my checks for 15% monthly AND can the IRS garnish my checks for an additional 15% each month bringing the total garnishment to 30% total? or can only 15% be garnished at any one time?

Thanks again

[Mr. Knowitall]

I don't much like to repeat myself. If you choose not to try to make a hardship case with the Social Security Administration, you will be garnished at the maximum levels.

The garnishments at issue come under separate statutes, and I don't see that the Social Security Administration has to impose a "first come, first served" rule, particularly if you can't be bothered to even tell them that you are experiencing hardship.

However, there are a lot of statutes and regulations at play, so it is possible that total garnishments are capped. This is something the SSA should be able to tell you if you ask.

[PAMichael]

I don't much like to repeat myself. If you choose not to try to make a hardship case with the Social Security Administration, you will be garnished at the maximum levels.

The garnishments at issue come under separate statutes, and I don't see that the Social Security Administration has to impose a "first come, first served" rule, particularly if you can't be bothered to even tell them that you are experiencing hardship.

However, there are a lot of statutes and regulations at play, so it is possible that total garnishments are capped. This is something the SSA should be able to tell you if you ask.

I apologize if I didn't state myself clearly: I already spoke to the SSA AND the U.S. Dept of the Treasury. They both directed me to AES/PHEAA who in turn directed me to only communicate with Windham Professionals. I tried to explain to all FOUR organizations that a offset would cause an undue hardship. NONE of them would even listen to me, let alone provide me with any means or direction in HOW to initiate a "hardship" case.

That's why I posted here in the first place. The only thing I found was a "Loan discharge" for "total and permanent" disability.

So, to recap what I have been told:

1. SSA- Says that they are not in control of what or how much gets garnished; passed me to the Dept of Ed;
2. US D.O.E- Also says they are not handling it and have no control of how much gets garnished; passed me to AES/PHEAA
3. AES/PHEAA- Will not speak with me nor provide me with information on hearings/appeals based on hardship; told me all commnications need to be directed to Windham.
4. Windham Professionals- Behave like what they are, a COLLECTION AGENCY that demands payment and tells me how I have no rights and they are the govt (which, obviously they aren't) and can do whatever they want,(which they can't) and tell me to call AES/PHEAA regarding Hearings/appeals based on hardship or any other reasons.

[kjcolmo]

PAMichael,

I so feel equal with you! You feel as if your being tossed every way. People wont give you a straight answer.
Im on the same boat as you. "good luck"