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Michigan Legal Aid

WHAT SHOULD I DO TO KEEP MY BENEFITS SAFE?

Even if your benefits are protected by law and the debt that you owe is not one of the “exceptions”, you must keep the benefits safe from garnishment after you receive them and should act quickly if someone tries to garnish your protected benefits.

AFTER YOU GET THE BENEFITS, DO NOT DEPOSIT THEM INTO AN ACCOUNT WITH OTHER MONEY

A person with a judgment against you will also look for your money in other places, such as banks, credit unions, and savings and loans.

    • If you mix your benefits in an account with other money (paychecks, tax refunds, etc.) you may not be able to prove that the money in the checking or savings account is protected.

    • If anyone has a money judgment against you, keep any protected benefits in an account separate from other money you have.

Consider Using a Savings & Loan Savings Account. The first $500 in a Savings & Loan savings account cannot be garnished.

WHAT IF I GET NOTICE OF A GARNISHMENT OR COLLECTION FROM MY BENEFITS?

Whenever you receive court papers, or agency notice that money will be collected from your benefits, consult a lawyer right away. Local legal services or legal aid offices may be able to provide advice, information or representation.

Note any deadlines on the notice. You have the right to object to the garnishment, but you must act quickly. It is a good idea to file Objections within 14 days. The form to do this is available at your local court clerk’s office. You can also print out this form from the Supreme Court Adminstrative Office's website.

Additionally, you can complete this and other forms online with step by step instructions by accessing our National Legal Services Automated Documents site.

If the notice is from the agency that sends your benefits, the notice will explain your right to appeal. Appeal to the agency within 10 days to keep your benefits at current levels while the case is being appealed.

CAN THEY TAKE MY BENEFITS TO PAY BACK MONEY I OWE?

If You Receive Food Stamps, Family Independence Program (FIP), State Disability Assistance (SDA), Social Security, or SSI (Supplemental Security Income) there are three questions you need to ask in order to decide if your benefit check is protected:

    1. Is my benefit or income exempt from garnishment or collection under the “general rule”?

    2. If yes, is the debt being collected one that is NOT an “exception to the rule” for the type of benefit I get?

    3. If yes, have I taken steps to keep my benefits protected? (this pamphlet explains how)

    4. If you answer “no” to any of these questions, your benefit may be garnished. Look for separate

      pamphlets on installment payments and bankruptcy.

WHAT TYPES OF BENEFITS ARE PROTECTED?

Laws protect certain types of benefits from garnishment or collection to pay a debt.

Protected benefits include:

Benefits from the Department of Human Services (DHS - formerly Family Independence Agency):

    • Family Independence Program (FIP) benefits ( formerly ADC)

    • State Disability Assistance (SDA)

    • Refugee Assistance Program (RAP) benefits

    • Food Stamps (including the food stamp “cash out”)

    • Your $50.00 child support pass through or “rebate”

    • Foster care payments

(note: Some DHS benefits can be taken to pay money judgments in certain landlord-tenant cases, or to pay back overpayments. There is more information below.)

Benefits from the Social Security Administration:

    • Supplemental Security Income (SSI)
    • Retirement, Survivors, or Disability Insurance (Social Security)

(note: These benefits may be garnished to pay child support benefits)

WHEN CAN PROTECTED INCOME BE GARNISHED ANYWAY?

1. CHILD SUPPORT COLLECTION: INCOME WITHHOLDING ORDERS

Court-ordered child support payments may be taken out of Unemployment Compensation and Social Security benefits (but NOT Supplemental Security Income (SSI)).

ASK THE FRIEND OF THE COURT FOR PAPERS TO MODIFY SUPPORT IF CIRCUMSTANCES HAVE CHANGED SINCE YOUR ORDER WAS ENTERED.

2. A LANDLORD’S MONEY JUDGMENT

Landlords may collect on court judgments for unpaid rent or damages to rental property. DHS may take 10% of your benefits under the Family Independence Program (FIP) or State Disability Assistance (SDA) program (but NOT Food Stamps or cash out Food Stamps) to pay the landlord.

DHS cannot take part of your check to pay the landlord if

• The rental property violated local building or rental housing codes or

• You paid the judgment

ASK FOR MORE INFORMATION ON “LANDLORD ARREARAGE VENDORING”

PUBLIC ASSISTANCE OVERPAYMENTS

If you get more benefits than you are entitled to, the Social Security Administration or Department of Human Services (DHS) may be able to take some of your current benefits to repay this “overpayment”.

If you get a notice that you were overpaid, that you intentionally failed to report information, or that
your benefits will be reduced to collect an overpayment:

    • Get legal advice before you attend any meetings to talk about the overpayment. Call to postpone the meeting if you need time to get advice.
    • Do not sign any papers about the overpayment until you have talked to an attorney, if you disagree or are
      confused about your rights.
    • Ask for a hearing and seek help from your local legal services office if the agency says it will reduce your
      benefits to collect the overpayment and you disagree with the decision.

ASK FOR MORE INFORMATION ON “PUBLIC BENEFIT OVERPAYMENTS”

REPAYMENT OF “INTERIM” STATE DISABILITY ASSISTANCE

If you receive State Disability Assistance (SDA) while you apply for SSI (Supplemental Security Income),
DHS may take part of your back SSI benefits as repayment for the SDA.

To locate free or low cost legal assistance:

  • Visit the Michiganlegalaid.org home page and search for local assistance by entering your zip code in the box marked “Find a lawyer, organization or related service to help you with your problem.” or

  • Look under "attorneys" in the yellow pages to find your local legal aid office, or

  • Contact the Michigan State Bar Lawyer Referral Service at (800) 968- 0738. 

  • Persons age 60 or older, regardless of their income, may be able to receive free advice from the Legal Hotline for Michigan Seniors by calling (800) 347-5297.