How joint bank accounts can expose your Social Security benefits to creditors
By
Matt Richardson
The bagel they save for the regulars. Don't skim, savour.
Summary
This article explains the risks of adding a second person to a joint bank account that holds Social Security benefits. While Social Security benefits are generally protected from creditors under federal law, placing them in a joint account can expose those funds to the co-owner's creditors, legal judgments, and other financial liabilities. The article warns that joint ownership can compromise the legal protections that Social Security benefits normally enjoy, and advises readers to carefully consider these risks before adding someone else to their account.
Key quotes
· 3 pulledFederal law treats your Social Security benefits, whether they're retirement benefits, disability benefits or otherwise, as some of the hardest money in the country for a creditor to touch.
A debt collector who wins a judgment against you generally can't seize those benefits directly from your check, even if a garnishment or levy order is issued by the court, and your bank is required to shield a portion of them automatically.
You should know if you're exposing yourself to risk before you add a second name to your bank account.
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