How are my Social Security benefits protected from most creditors under California and federal law?

Under federal and California law, your Social Security benefits are highly protected from garnishment by most private creditors, both before and after they are deposited into your bank account. Here is how to ensure your benefits remain protected if a creditor tries to take them. Step 1: Use Direct Deposit into a Dedicated Account Ask the Social Security Administration to deposit your benefits directly into a bank account. If possible, use this account exclusively for your Social Security deposits. This prevents "commingling" (mixing) your protected funds with other money, making them easy to identify. Step 2: Understand Automatic Bank Account Protection California Code of Civil Procedure Section 704.080 provides automatic protection for Social Security funds paid by direct deposit. If a creditor levies your account, the bank must automatically protect up to $2,000 for a single depositor or $3,000 if two or more depositors have their Social Security paid into the account. You do not need to do anything to get this initial protection. Step 3: Act Immediately if You Receive a Notice of Levy If a creditor tries to take funds above the automatically protected amount, the sheriff will mail you a "Notice of Levy" and other forms. Do not ignore these documents. You have a very short deadline to act. Step 4: File a Claim of Exemption To protect funds above the automatic limit, you must complete and file a "Claim of Exemption" (Form EJ-160). On this form, you will state that the money in your account is from Social Security and is therefore exempt from seizure under federal and state law. Step 5: Submit the Form Within 10 Days You must file your completed Claim of Exemption with the levying officer (usually the county sheriff's department listed on the notice) within 10 days of the date the Notice of Levy was mailed to you. The creditor then has 10 days to oppose your claim. If they do not, the money will be returned to you. Important considerations: Keep bank statements and your Social Security benefit award letter. You may need these documents to prove to a court that the funds in your account are from Social Security, especially if the creditor challenges your Claim of Exemption. Warnings and limitations: These protections do not apply to all debts. The federal government can garnish your Social Security benefits to collect on debts for federal taxes, child support, or alimony. Additionally, a bank may be able to use funds in your account to cover debts you owe directly to that bank, such as overdraft fees or a loan. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney.