What happens when Social Security recipients are sued over unpaid debt?

MoneyWatch: Managing Your Money What happens when Social Security recipients are sued over unpaid debt? 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 June 8, 2026 / 11:58 AM EDT / CBS News Add CBS News on Google It's important to know what happens after a lawsuit is filed if you're a Social Security beneficiary with unpaid debt in retirement.  golibtolibov/Getty Images For millions of retired Americans, the Social Security benefits they receive each month serve as the financial foundation that keeps monthly bills paid and essential expenses covered. But as high and rising inflation continues to strain household budgets and borrowing costs remain elevated, some older Americans are finding it harder to fit all their financial obligations into the budget. That's particularly true for those who are carrying debt in retirement, as today's high-rate, inflationary landscape is driving up the costs of both essentials and debt, making it tough to stay current on credit cards, personal loans and other obligations.Falling behind on your debt is never ideal, as a few missed payments can set off a chain of events that eventually leads to collection activity and, in some situations, a lawsuit. Being sued over unpaid debt can be especially impactful for someone living primarily on a fixed income, as, in many cases, there's not enough leftover for expensive attorney fees or legal costs, much less to pay off what's owed. Th...