Retired and sued for debt? Here's what creditors can (and can't) take

MoneyWatch: Managing Your Money Retired and sued for debt? Here's what creditors can (and can't) take We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications. Read Full Bio Angelica Leicht May 18, 2026 / 11:38 AM EDT / CBS News Add CBS News on Google Retirees facing collection activity should understand which protections could apply to their income and assets. Pla2na/Getty Images Retirement is supposed to usher in an era of financial stability and predictability, and for some retirees, it does. But for many older Americans, the pressures of today's rapidly rising living costs, coupled with their lingering high-rate credit card balances and expensive medical debt, are creating new financial issues that are adding to the stress on their fixed incomes. In turn, it's getting more difficult for many retirees to keep up with what they owe on their debts, and as the payment delinquency rates climb, more are finding themselves on the receiving end of collection efforts — and, in some cases, debt lawsuits.Being sued over unpaid debt is never ideal, but it can be especially detrimental for retirees who rely on fixed income sources like Social Security, pensions or retirement savings to cover their monthly expenses. A lawsuit from a creditor can not only be difficult and expensive to navigate, but it can also raise immediate concerns about losing monthly benefits, facing a bank account freeze or even jeopardizing a retirement nest egg. But while creditors c...