Hi Stosh,
No, Social Security payments are not vulnerable to judgements. Under
Federal law, Social Security benefits are exempt from judgements. The
Marietta (Ohio) Municipal Court discusses small claims judgements and
what sort of assets and/or income may be garnished or attached:
"Income from sources such as Social Security, Welfare, Workman's
Compensation, Unemployment Compensation, etc., are exempt and
protected from garnishment. It is also possible for the judgment
debtor to block any action you take against a bank account if it can
be shown the money in the account came from these types of sources
(public assistance)."
Limits and Exceptions for Judgements
http://www.mariettacourt.com/smclaims.htm#Limits
Prairie State Legal Services also discusses Social Security payments
and their exemptions from judgements in their guide to dealing with
judgements, liens, and garnishments:
"Your right to receive certain types of government benefits or
assistance.
This exemption covers government benefits such as Social Security,
unemployment compensation, public aid, veteran's benefits, and other
forms of public assistance. Your right to receive circuit breaker
property tax relief benefits is also exempt."
When You Owe Money
http://www.prairiestatelegal.org/Publications/OweMoney/WhenYouOweMoneyPrint.htm
Neither can Social Security income be considered in a bankruptcy
filing:
"In addition, 11 USC § 522(d)(10) allows the debtor to exempt social
security benefits; Veterans' benefits; disability, illness or
unemployment benefits; alimony, support, or maintenance to the extent
reasonably necessary for the support of the debtor or any dependent;
payments under stock bonus, pension, profit sharing, annuity or
similar plans or contracts on account of illness, disability, death,
age or length of service, to the extent reasonably necessary to the
support of the debtor or any dependent of the debtor. This provision
is subject to certain limitations. In Re Rector, 134 Bankr. 611 (W.D.
Mich. 1991)."
Asset Protection Planning
http://www.berrymoorman.com/articles/rmwassetoutline.html
In the case of non-ERISA IRAs, the law varies from state to state.
ERISA funds are protected by federal statute, but non-ERISA are left
at the mercy of state courts:
"Much of the protection of non-ERISA retirement accounts rests
primarily on state laws, which vary significantly. Take annuities,
which are popular among doctors, business owners and others who make
popular targets for litigation. Some states fully protect the assets
in annuities from creditor claims, while other states offer no
protection at all. Still others offer limited protection or will
protect only a portion of the assets.
ERISA does not cover individual retirement accounts. However,
twenty-six states exempt all IRA assets from creditor claims and 18
states and the District of Columbia leave it up to the courts to
determine what is a reasonable amount to exempt in order to support
the retiree and dependents. For example, a court might award creditors
$2 million out of a $3 million IRA, leaving only $1 million to the IRA
owner. Eight states offer no protection at all for IRAs."
ARE YOUR RETIREMENT ASSETS PROTECTED FROM CREDITORS?
http://www.protectassets.com/news/art/2000/assets0500.html
The chart located at the URL below shows the treatement of IRAs under
state law on a state by state basis:
STATE-BY-STATE TREATMENT OF INDIVIDUAL RETIREMENT ACCOUNTS IN
BANKRUPTCY
http://www.ici.org/issues/99_state_ira_bnkrptcy.html
I hope this has answered your question. If you need clarification or
further information, please don't hesitate to ask. I'll be glad to
help!
--Missy
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