Another reason to deal with debt before it deals with you–Your social security check is no longer ‘safe’ from the Feds after 10 years

Another reason to deal with debt before it deals with you–Your social security check is no longer ‘safe’ from the Feds after 10 years

If you’re getting close to retirement, or have already retired, congratulations. You may know that your social security check is immune from collection attempts by your creditors. That is why you need to keep your social security money separate from all other income and asset-accounts.

But did you know that the Feds just changed the rules with regard to how long they can come after you for “Federally-related debt?” These are debts for things like defaulted farm- and small-business loans, amounts veterans owe for health care, and other debts to the government.

It used to be that if the debt was older than 10 years, your SSI check was safe. This is no longer the case. There is now no limit as to how long the offsets can occur (though the max offset appears to be 15% of your SSI check).

A ten year limit on off-seting your SSI income for unpaid income taxes remains; but there is no limit to the amount of reduction for your SSI benefits to make up for unpaid taxes. You could lose your entire SSI check for up to ten years if you owe income taxes at the time you qualify for SSI.

This is another reason you need to deal with your debts before they deal with you. Should you file bankruptcy to have your income tax debt, SBA debt, VA debt discharged?

Call Attorney McDuffie at (404) 418-8879 to learn more.