Can A Retirement Pension Be Garnished
| Garnishment is a legal process to attach one’s assets. That is to take one’s money, for example, from one’s bank account or one’s wages. However, garnishment is not allowed until a court judgment has been obtained that money is owed to the creditor.
Usually, garnishment is done in order to recover debts.There are various types of income that are exempt from garnishment. These include Social Security, aid to families with dependent children, general assistance, unemployment compensation, and workers' compensation benefits.
Garnishment of pension income is dependent on the type of pension and the exemption laws that apply in the pensioner’s federal state. Some pensions are totally exempt from garnishment for commercial debt, but they could be garnished for child support or alimony. Many states exempt certain pensions or a part of the pension from garnishment just as federal law protects Social Security benefits, military retirement benefits, and veterans' benefits from garnishment for commercial debt. More...
Pension Payment And Loans
Pension loans are loans given to retired persons or pensioners against their future pension payments. The future payments are used as a security for the repayment of the loan. The advantage of a pension loan is that the retired person will get a lump sum of cash immediately, in exchange for a particular number of pension payments.Firstly, why would pensioners want to apply for a loan and what are the options available with them in case they want to avail a loan.The answer is simple. If the pensioners require bulk amount and have no other sources of income, then their only option is to avail a loan. What are the loan options for the pensioners? The answer is minimal, unless the pensioners have other assets of considerable value to borrow a loan against.
If pension plan is their only source of income, then many financial institutions regard them as unqualified borrowers for financing as they do not consider pension plan as a valid source of income. Under these circumstances, availing a loan against pension payments is the best option. In fact, the pension loans have been designed to cater this demographic segment.More...
What Is A Pension Plan ?
It cannot be argued that most people would need money to meet their expenses, after they have taken retirement. The expenses can be day-to-day or medical related or any other. You will need a source of income, after you have stopped working. This is where a pension plan helps.A pension is an arrangement or a plan to present an individual with an income when they are no longer earning a regular income from employment. A pension plan is set up by a corporation, organization or labor union to provide an income for its employees after their retirement.
A pension plan is, in many ways, a method by which an employee sets aside a part of his/her current income in order to spend money when they are no longer earning a regular income from employment, i.e., after retirement. These plans are exempted from tax.More...