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Exemption/Bank Accounts

The protections afforded Social Security and SSI recipients under 42 U.S.C §407 has provided that, with few exceptions, Social Security and SSI benefits are exempt from creditors.


Tax Refunds Exempt from Collection for Old Social Security Debts
In a policy change that will affect tens of thousands of Social Security recipients, the Social Security Administration (SSA) pledged to stop collecting old overpayments from federal tax refunds. Several lawsuits, including ones in Maryland and the District of Columbia, highlighted the unfairness of SSA’s practice of collecting old overpayments, some arising from payments to deceased parents. Read More

OTDA Changes Protect Exempt Benefits
The Office of Temporary and Disability Assistance (OTDA) has altered its Property Execution (PEX) system to prevent the seizure of bank accounts when the respondent is a recipient of Title II or Title XIV benefits. Read More

Protecting Funds from Illegal Seizure
Alarmed by the number of calls coming in dealing with the improper seizure of bank accounts containing funds which are exempt from seizure under federal law, including Social Security, disability benefits, pensions, child support and other essential income, Empire Justice staff began looking at the issue more closely. Read More

Banking Alternatives for Dedicated Savings Accounts
As DAP advocates know, retroactive benefits for children’s SSI cases must be put into a Dedicated Savings Account (DSA) and used for extraordinary items related to the child’s disability. Since SSA will not pay any retroactive benefits until the DSA is established, what can representative payees do if they have a bad bank history and cannot find a financial institution that will accept their account? Read More

Exemption/Bank Accounts: Articles


New Rules Kick in for Social Security and SSI on May 1
Beginning May 1, 2011, elders, veterans, and the disabled can rest a bit easier as a new federal rule kicks in that will limit creditors’ ability to seize funds from Social Security, Social Supplemental Income (SSI), VA, and other federal benefits held in bank accounts in favor of direct deposit or prepaid cards Read More


Disability Law News - July 2017
The Disability Law News is a quarterly newsletter published for DAP Advocates. In this issue, we summarize a policy change by SSA that exempts tax refund collection for old debts. Several new regulations, administrative decisions and court decisions are also discussed. Read More

Disability Law News - September 2015 Issue
The Disability Law News is a quarterly newsletter published for DAP advocates. This issue will look at the Second Circuits Reaffirmation of the Treating Physician Rule. Also in this issue you will find several new court decisions, regulations as well as other useful information for advocates. Read More