The answer is a qualified yes — if you set up a segregated account, according to this L.A. Times article:
Social Security benefits are generally protected against garnishment, levy or bankruptcy proceedings as long as money is “still identifiable as Social Security benefits in a bank account where the only payments into the account are from direct deposit.”
There are some exceptions to the creditor protection:
• The Internal Revenue Service can seize an account to collect unpaid federal taxes.
• The account can be garnisheed to enforce child support or alimony obligations.
• The state can be reimbursed for interim assistance to Supplemental Security Income recipients. (SSI is the Social Security disability program.)
Also, the protection may not prevent a creditor from trying to raid your account — it just provides a remedy in case such an attempt is made.
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