If you are paying child support and start receiving disability benefits, there are a few things you need to know, including the possibility of having your payments garnished, changes in your child support order, and the possibility of qualifying for dependent benefits.
If you receive Social Security Disability Insurance (SSDI) benefits and are overdue on your child support payments, SSDI funds may be garnished to cover the arrears. They can be used to settle current or back payments for child support. A portion of any Social Security back payment received in a lump sum may also be withheld to fulfill child support obligations.
In this article, we will provide valuable information about the garnishment of your SSDI payments for court-ordered child support payments. Keep reading below to find out more!
Child Support and Disability Payments
Although your ability to pay child support may change after suffering an injury or disability, you are still legally responsible for doing so. That’s why it’s smart to think about safeguarding your income with disability coverage.
Both short-term disability insurance, which is frequently purchased through an employer’s benefits program, and long-term disability insurance, which is typically purchased independently, fall under the umbrella of private disability insurance.
If you receive disability insurance payments, you may be compelled by law to disclose this information when calculating your child support obligation.
How much of your income can be counted toward your child support or spousal support obligation is governed by your state’s legislation.
Payouts from disability insurance are added to other sources of income such as salary, wages, tips, commissions, royalties, bonuses, interest, and dividends. Disability insurance payments are subject to garnishment in the same way that wages or salaries are if child support is owed but not paid.
You might be able to earn a credit or a deduction from your child support obligations if you reside in a state that mandates non-custodial parents to acquire disability insurance.
Can SSDI Be Garnished?
Social Security Disability Insurance (SSDI) is a program run by the Social Security Administration that provides financial support to those who become disabled and have worked for the required number of years to qualify for benefits.
The amount of child support you owe is calculated in part by your monthly SSDI payout. If you are unable to pay child support, a court might order that a portion of your Social Security disability income be used to cover your obligation.
Since the process of applying for and being accepted for SSDI benefits can be lengthy, many recipients are also entitled to back pay for the total number of months that passed between the time they became eligible and the time they were approved for benefits.
This retroactive payment is subject to garnishment in the same manner as your normal disability payments, and the court may consider it when establishing your child support obligation.
According to the SSA, “Section 459 of the Social Security Act (42 U.S.C. 659) permits Social Security to withhold current and continuing Social Security payments to enforce your legal obligation to pay child support, alimony, or restitution. By law, we do not make retroactive adjustments.”
What Percentage of SSDI Can Be Garnished for Child Support?
The amount that can be taken from your paycheck through garnishment is limited by law.
The federal Consumer Credit Protection Act (CCPA) permits the seizure of up to 50 percent of the benefits you get if you are providing for a child or spouse in addition to the person who is the focus of the court order, and up to 60 percent of the benefits if you aren’t providing for a spouse or child in addition to the person who is the focus of the court order.
If you are more than 12 weeks late on your payments, you may be subject to an additional 5% late fee.
The CCPA is followed by most states, however, some states have restrictions regarding the maximum amount of income that can be deducted for alimony or child support. In the event of a disagreement, the smaller of the two amounts will take precedence.
What to Do If You Become Disabled and Can’t Pay Child Support
If you become disabled and are unable to work, you may find that you are no longer able to pay your bills, including child support, or that the disability payments you receive are not enough to make up the difference between your regular paycheck and the amount you were making before you became disabled.
If this is the case, then you might be able to secure an adjustment to your child support order that decreases your payments while you’re disabled. You might have to file the adjustment with the court and make a personal appearance in court along with the other parent of your child to plead your case, but it could end up saving you hundreds, or even thousands, of dollars.
Your child support payments may be reduced by the court, either temporarily or permanently. If your inability to work causes a drop in your child support payments, the court may order the other parent to make up for the shortage.
When it comes to calculating child support obligations and establishing how much money a custodial or noncustodial parent could be obligated to pay, states use a variety of different formulas and methodologies. It is reasonable to expect that a lawyer who specializes in family law might be able to respond to queries regarding your specific case.
Keep in mind that it may take some time to process your adjustment request and that you will still be responsible for paying child support during that time.
Conclusion
If you fall behind on child support payments and are receiving SSDI benefits then the SSA will indeed garnish a certain amount from your SSDI payout to cover that difference.
However, if you feel like this will be a regular occurrence (because of difficulty in making ends meet), then you must file for an adjustment of your child support payment as soon as possible.
