Are SSDI Benefits Protected from Garnishment?

In most cases, yes. SSDI benefits are protected from garnishment by private creditors. This includes debts from credit cards, medical bills, payday loans, personal loans, and most civil court judgments. If a creditor sues you and wins, they generally cannot take your SSDI payments to satisfy that debt. This protection is guaranteed under federal law and also recognized under Arizona state law.

However, this protection is not absolute. There are specific types of debts where garnishment is allowed, and in those cases, a portion of your SSDI benefits can be legally withheld.

When SSDI Can Be Garnished

1. Child Support and Alimony

If you owe back child support or spousal maintenance, your SSDI benefits can be garnished. These types of support obligations take priority over many other debts. Depending on the circumstances, up to 65% of your monthly SSDI payment can be withheld to cover these obligations. The exact percentage depends on how far behind you are on payments and whether you have dependents to support.

2. Federal Debts

If you owe money to the federal government—such as back taxes or defaulted student loans—your SSDI benefits may be subject to garnishment. For tax debts, the IRS can withhold up to 15% of your monthly benefit. Similar limits apply to other federal debts, such as federally guaranteed student loans. These garnishments are typically processed through a federal offset program and do not require a court order.

3. Court-Ordered Restitution or Criminal Fines

If you’ve been ordered by a court to pay criminal restitution or fines related to a conviction, your SSDI benefits may also be garnished. These cases are less common but can result in legally authorized withholdings from your disability payments.

Are SSDI Funds in My Bank Account Safe?

Even if SSDI benefits are generally protected from garnishment, you might still face issues once they’re deposited into a bank account. To protect beneficiaries, federal banking rules require banks to automatically protect two months' worth of Social Security benefits from being frozen or garnished by creditors. This means if your account is garnished, your bank must identify and safeguard SSDI deposits from the previous two months.

To maintain clear protections, it’s best to keep SSDI deposits in a separate account and avoid mixing other types of income in the same account. Doing so helps the bank and the courts easily identify the protected funds.

Arizona-Specific Considerations

In Arizona, state law aligns with federal protections for Social Security benefits. This means that private creditors cannot garnish your SSDI benefits through state court actions. However, Arizona does enforce garnishment orders related to child support, alimony, and federal debts, just like other states. If you live in Arizona and are concerned about garnishment, it’s important to know which type of debt you’re dealing with and how your benefits might be affected.

What You Can Do to Protect Your Benefits

If you’re worried about garnishment, you can take steps to better protect your SSDI:



• Keep your SSDI in a separate bank account used only for those deposits
• Monitor your account to ensure no unauthorized deductions are made
• Seek legal advice if you receive a garnishment notice or are behind on support or federal debts
• Respond promptly to any communication from government agencies or courts regarding potential garnishments