Can the money you rely on in retirement be taken to pay off old debts? For many seniors living on fixed incomes, this is a scary thought. But what happens when creditors come calling?
In retirement, our income sources change, but debt collectors don’t always slow down. That’s where the Law Office of Joel Gonzalez can step in. As a bankruptcy law firm focused on helping individuals protect what matters most, we understand how Texas law treats Social Security and what can—and cannot—be taken by creditors.
In this blog, we’ll break down what types of debt can lead to legal action, how Social Security is treated under the law, and what to do if debt collectors are already reaching out.
Is Your Social Security Income Protected?
Social Security benefits are generally protected from most creditors. This includes retirement, disability, and survivor benefits. These funds are shielded by federal law when they’re deposited directly into your bank account.
But there are limits:
- If you co-mingleSocial Security with other income, it can be harder to prove what’s protected.
- If the funds are withdrawn as cash and not tracked, creditors may argue those funds are no longer protected.
Some government debts (like unpaid taxes or federal student loans) may still affect your benefits.
- For most consumer debts—credit cards, personal loans, or debts tied to a medical debt collection agency—Social Securityis safe. But knowing your rights is essential.
When Can Creditors Take Action?
While Social Security itself may be protected, creditors can still:
- Sue for unpaid debts
- Win a judgment in court
- Attempt to freeze or garnish funds in your bank account (though banks must check whether the funds are protected)
This is where retirees can run into trouble—especially if they’re not aware that credit and Social Security protections exist.
Warning Signs That Legal Action May Be Coming
Ignoring calls or letters won’t stop debt collection harassment. Look out for:
- Court summons related to a debt collection lawsuit
- Bank account freezes after a court judgment
- Persistent collection efforts even after you’ve told them to stop
If any of these apply, it’s time to seek help. A debt collection relief attorney in Texas can review your situation and help protect your income.
What You Can Do to Protect Yourself
Retirees have several options to push back and stop debt collectors from crossing the line:
- Keep records– Make sure deposits are clearly labeled as Social Security.
- Separate your accounts– Avoid mixing protected income with other funds.
- Respond to lawsuits– Don’t ignore any legal documents. A judgment can lead to serious consequences.
- Work with an attorney– Especially if you’re dealing with a debt collection lawsuit in Corpus Christi or anywhere in Texas.
Wondering If You’re at Risk?
If creditors are trying to collect and you’re unsure whether your Social Security is protected, don’t wait until they take action. The Law Office of Joel Gonzalez helps people understand their rights and take the right steps to protect their income. With a deep understanding of how credit and Social Security laws work in Texas, we’re here to help you stop debt collection harassment and find lasting relief.
Contact the Law Office of Joel Gonzalez today to find out how we can help you stop the calls, avoid further legal trouble, and keep your retirement income protected. Let’s make sure creditors don’t take more than they’re allowed.
