The LA Times’ Liz Weston Pulliam addresses this question in her recent column:
Question: In the past, we’d heard that a bank account could be protected from creditors, U.S. Bankruptcy Court and other government authorities if it were set up to receive only Social Security funds.
For several years, we thought we had such an account, but now the bank denies that such protection is possible. We’re not facing any lawsuits or other problems, but we do wish to protect this money in the event of a catastrophe. Could you discuss this issue?
Read the answer here: