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Federal benefits are not eligible for garnishment Atlanta, GA

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Federal benefits are not eligible for garnishment

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About a year ago, a new law went into effect which protects federal benefits from attempts at garnishment by credit card companies and other creditors. While this law is extremely helpful for Georgia residents that receive veterans’ or Social Security benefits, it comes with a fairly long list of qualifiers and requirements. As such, it is important to understand the law’s fine print in order to avoid an unexpected garnishment.

When banks receive a garnishment order, they must review the bank account in question before complying with the order. If the account contains federal benefits, then the bank may not allow those funds to be garnished. Protected benefits include Veterans Affairs, Social Security, Supplemental Security Income, Railroad Retirement, Railroad Unemployment Insurance, Civil Service Retirement System or benefits from the Federal Employees Retirement System and the Office of Personnel Management.

However, there are some additional qualifications that accounts must meet in order to be protected from garnishment. The federal benefits must be directly deposited into the bank accounts. If they are manually deposited, they will not be eligible for protection. Similarly, if funds are transferred between accounts (from a checking to a savings, for example), the transferred funds will not be protected.

In addition, banks must only look back at the past two months when determining how much of the account to protect. For example, if they see from the account records that the accountholder has received $400 each month for the last two months, they must only protect $800 from garnishment. Any excess funds in the account may be garnished.

There are other details in the law that could affect your federal benefits and your bank account. An experienced wage garnishment attorney can help ensure that your money remains in your account where it belongs.

Source: Bankrate, “Feds protect VA wages from bank garnishment,” Steve Bucci

Posted on behalf of Gingold & Gingold

1718 Peachtree St NW, #385
Atlanta, GA 30309

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They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

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I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

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I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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