Retired and sued for debt? Here's what creditors can (and can't) take
Retirees facing debt collection should be aware of their rights and protections regarding income and assets. While creditors can pursue unpaid debts, certain retirement benefits, like Social Security, are generally protected from garnishment. Understanding the legal limits on what creditors can take is crucial for retirees managing financial stress.
- ▪Retirees are increasingly facing debt collection due to rising living costs and high medical expenses.
- ▪Social Security benefits are typically protected from garnishment for most private debts, even if a creditor wins a lawsuit.
- ▪Retirement accounts like 401(k)s and pensions often have legal protections, but these can vary by account type and state laws.
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MoneyWatch: Managing Your Money Retired and sued for debt? Here's what creditors can (and can't) take We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
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