Can You Lose Your Social Security On Overdue Debt? | Personal finance
What if you are retired and cannot pay your debt?
In a perfect world, paying off debt wouldn’t be part of your retirement years. But the reality is that it is often inevitable. Retired or not, you have options if you’re having trouble paying off your debts, especially when you owe the federal government.
You can usually get approval for an IRS payment plan in a matter of minutes online if you owe taxes. If you have federal student loans – including Parent PLUS loans you took out for your child’s education – an income-based repayment plan that will cap your payment at a percentage of your income is likely an option. You can also ask a court to change the payments you have been ordered.
Ultimately, if you’re trying to protect your Social Security checks from garnishment, it’s worth being proactive. Take action as soon as you know you won’t be able to make a payment.
The $ 16,728 Social Security bonus that most retirees completely ignore
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “social security secrets” could help you boost your retirement income. For example: a simple tip could net you up to $ 16,728 more … every year! Once you’ve learned how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Just click here to find out how to learn more about these strategies.