Garnishment of Social Security Paymentson January 14th, 2011 at 11:25 pm
Federal law prohibits banks from effecting garnishment orders against Social Security assets in bank accounts. This issue has received a lot of press, primarily because some accountholders’ Social Security assets have been illegally garnished. The garnishment issue is also of concern to banks because their accounting systems may not be designed to distinguish Social Security assets from other assets. of Soc. Sec. from bank accts, creating probs for accountholders and banks. On April 19, 2010, various agencies proposed a rule to implement statutory restrictions on the garnishment of Social Security payments and other federal benefit payments.