Legal
Exempt Income
Exempt income is money that is legally protected from garnishment or levy, such as Social Security, veterans' benefits, and certain other federal benefits, along with income protected by state exemption laws. Collectors and courts must respect these protections when enforcing a debt.
What Exempt Income means for creditors
Knowing what cannot be collected is as important as knowing what can. MSB screens for exempt income to keep enforcement lawful and to focus recovery effort where it can actually succeed.
Legal reference: 31 CFR Part 212 (federal benefit protection); state exemption law
Midwest Service Bureau has recovered commercial, medical, utility, and government debt for creditors nationwide since 1970 — on a no-recovery, no-fee basis. Questions about exempt income or a portfolio you'd like reviewed? Call (800) 362-0272.
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