Many people who receive Social Security disability benefits live on fixed incomes and may not have the resources to recover or deal with a financial hardship. If you are unable to pay your bills, financial institutions or creditors may be able to seize funds in your bank account.
However, your Social Security disability benefits are generally protected from most liens provided they are kept completely separate from other assets you or your spouse may have. After that 60 day period, institutions may incorrectly seize these funds.
Your disability benefits may also be vulnerable if you deposited your benefits using a paper check. The Social Security Administration (SSA) has moved to a largely paper-free system, and most monthly payments are now dispensed using direct deposit.
Banks and credit unions are required to identify funds coming from direct deposit, which could help keep your benefits safe. Direct deposit can help protect your money from seizure, and it is also a simple, stress free way to make sure that your benefits go straight to your bank account each month. It could also be helpful to keep a separate bank account just for your Social Security benefits. This will clearly differentiate your assets in the event that a creditor comes after you.
Troutman & Troutman, P.C. – Tulsa Social Security disability lawyers