I will turn 70 in 45 days. After I lost my business and employment I am leaving on a fixed income that I draw from SS and my wife’s earnings. My company defaulted on $48,000 SBA loan that I am a guarantor. My social security payment has been deduced By 15% ($225.30 per month) to pay the SBA loan. Can SBA legally take this from my SS benefits?
Can the Small Business Admistration legally take a portion of my Social Security benefits to pay for an SBA loan that my company defaulted?
Social Security will garnish benefits:
- To enforce child support or alimony obligations under 42 USC 659.
- To enforce a valid garnishment for court-ordered victim restitution under 18 USC 3613.
- To collect unpaid federal taxes under 26 USC 6334(c).
- To have a portion of your check withheld to satisfy a current year federal income tax liability under 26 USC 3402 (P).
- Other federal agencies will offset benefits to collect money from benefits to pay a non-tax debt owed to that agency according to the Debt Collection Act of 1996 (Public Law 104-134).
if the amount garnished creates a financial hardship, you can ask Social Security for reconsideration of the garnishment. Financial hardship is defined as “We will find financial hardship when you show that withholding a particular amount from your pay would deprive you of income necessary to meet your ordinary and necessary living expenses. You must give us evidence of your financial resources and expenses.”
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