I’m Disabled and Being Sued About Past Due Credit Card Debt

Written by Steve Rhode


Dear Steve,

I am being sued over a $2600 debt with CC company. I am fully disabled. My income comes from two sources, SSDI and private disability insurance.

I know that SSDI is not garnishable, however, it’s unclear whether my private disability insurance is garnishable. Wisconsin statues regarding this matter at best are extremely vague or nonexistent.



Dear John,

I asked for feedback from Eric Olsen, the Executive Director at the nonprofit law firm HELPS.

Here is what he had to say about your situation, “Almost every state has laws that protect private disability from garnishment. Because of that and for other reasons a consumer judgment creditor, including a credit card judgment holder, will never take steps to garnish private disability. Even in a state where the law is questionable.

Furthermore, twice the amount of social security electronically deposited into a bank account is protected from garnishment under federal banking regulations, no matter the source of the funds in the account at the time of a garnishment. So, if you receive $1000 each month in SS, then $2000 is protected automatically no matter where the money came from, including private disability, that is in the bank at the time of the garnishment. So if you keep the checking balance below that number, any garnishment would be disregarded by the bank.”

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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