Those who count on their social security usually have limited resources other than those payments, so understanding how social security disability income works and having a secondary plan in place if it fails is critical.
One reason that Americans need to plan to protect their social security disability benefits is because bankruptcy is on the rise.
When an individual files bankruptcy, their personal bank account is investigated, along with tracking any recent purchases on credit cards they may have included or recent car loans that are less than ninety days old.
The bankruptcy courts may attempt to take any monies paid by social security and pay your creditors.
When this is your only source of income it can make things difficult, so it may be wise to find an attorney that specializes in these types of cases.
The economy itself is in turmoil, and those who are on disability have limited options.
They are not able to work, so the disability payments are the only income they have.
Everyone has monthly financial obligations, so it is even harder to budget on a limited income when prices are going up.
When bills go unpaid or are sent to collections then social security disability wages can be garnished.
Beginning in March 2011, new enrollees must get their payments via electronic deposit so that it goes directly into their account.
This is done in part to protect these wages from being garnished, however banks do not guarantee that they will protect the account.
If you believe that this could happen to you, but you are unsure, check with your bank to find out what their policy is in this situation.
Having a joint account with your spouse may cause more challenges than keeping your disability separate.
This can be tricky when a creditor is attempting to garnish wages and is taking money that is blended with someone else's in the same account.
Keeping your disability payments in one bank account can help you fight the garnishment much easier, so that everyone can see exactly how much you are receiving, and how much should be paid to the creditors in question.
Debit cards will also now be available to those who wish to receive their benefits this way.
This means that they will be transferred to a debit card account with a MasterCard or Visa symbol, and the card can be used at grocery stores, gas stations, and many other places.
This makes it more convenient for you to receive your money, and harder for someone to garnish your wages because they can't readily access the money.
Protecting your social security disability payments is important, especially when you have no additional sources of income.
Bills still need to be paid, but you still have rights, and being able to protect what little money you are receiving is one of those rights.