Social Security benefits at risk

Did you know that a federal agency that wants an easy way to collect debts from seniors and disabled persons can do so by reducing Social Security Benefits? It gets worse - there used to be these agencies had only ten years to do so. Not so anymore. time limitation has changed for collection of these old debts.

What changed?

Previously the US government wasn't able to offset Social Security payments to recover debts delinquent for more than 10 years, other than student loans.

Now Congress slipped into a Farm Bill a provision lifting the 10 year time limitation on the federal government's ability to offset Social Security benefits. 31 CFR 285.4

This means that now those student loans through the Department of Education, Veterans' Affairs debts, Department of Agriculture debts, Army & Air Force Exchange Service debts, and other federal agencies can offset your Social Security benefits until hell freezes over, or until they collect the full debt, plus penalties and interest.

There are two helpful limits on the Treasury Department's ability to offset Social Security benefits. First, they can only withhold 15% of the benefits. Second, low level Social Security recipients; other than IRS debtors, cannot have their payments go below $750 a month.

The new rules do allow debtors a copy of their files and to apply for payment plans or waiver provisions when disability or hardship is involved.