Can your Social Security benefits be garnished? None of your social security benefits are subject to garnishment, if the creditor is a non governmental entity such as a auto loan company, credit card, or mortgage or some other non governmental entity. Specially, Section 207 of the Social Security Act (42 U.S.C. 407) bars the garnishment of any Social Security benefits regardless of there whether the benefits are in the possession of the Social Security Administration, the beneficiary, or in a bank account.

If you are in serious financial stress, you may consider filing bankruptcy. However, there are various chapters under which you can file your bankruptcy. The chapter under which you can file your bankruptcy will depend upon your financial situation, the type of job you are into and your income. There are basically two types of bankruptcy for the common man – Chapter 7 and Chapter 13 bankruptcy. However, you should also know that bankruptcy lowers your credit score by 200-350 points and that’s why many people opt for debt settlement instead of bankruptcy to get out of their debt problems.