Social Security benefits are protected from collection efforts from "regular" creditors like:

• Banks,
• Credit card companies, and
• Hospitals.

A creditor may freeze your bank account. This will happen if you mix your benefits with other money.

Your bank should allow you to access 2 months' worth of benefits. You may still have to go to court and ask the judge to release your frozen funds. It's best to keep your Social Security benefits in a separate account with no other money.

The federal government can reduce your benefits if you owe them money.

If you owe taxes, the IRS can withhold up to 15% of your benefits (except SSI) until the debt is paid.

You will receive a notice from the IRS before this tax levy begins. You can request a hearing and propose other payment options. To discuss your appeal rights and collection options, call the IRS at (800) 829-7650.

You may owe a debt to another federal agency. This includes:

• A student loan from the Department of Education,
• A home loan from the Veterans' Administration, or
• A food stamp overpayment.

These agencies may claim up to 15% of your monthly benefits. However, they can't reduce your benefits below $750 per month. You should get a notice from the agency before the reduction begins. You must contact that agency, not SSA, to make payment arrangements. You can also contact the Department of the Treasury with questions at (800) 304-3107.

There is one exception to the above limits on withholding. Some federal agencies, like the Social Security Administration, may withhold any amount of your benefits if you are accused of committing fraud. In this case, you may still be able to get some relief by filing bankruptcy. But this is a complicated situation for which you would need to seek legal assistance.

Your benefits could be garnished to pay child support or maintenance.

Your benefits can be reduced if you owe non-tax federal debts. A reduction notice will be sent by the agency you owe money to. If this happens to you, you will have to contact the agency involved. You can't appeal the reduction of your benefits with the Social Security Administration. The first $750 of benefits won't be reduced.