When a check deposited into a bank account is "dishonored," the bank gets nothing and must offset the amount of the check from the account. This is a standard term of you having a bank account, and since this term is contractual, the fact that other money in the account was from social security may not matter.
The bank is not keeping anything - they are simply offsetting from your account for a deposit that never really existed.
Hope this perspective helps!
It is important to keep Social Security money separate from other money, even if it means opening another account. Once you put different money from different sources in one account, the money loses any protected status because the money is all commingled and the courts say that means you cannot tell which money is from what source.
If you keep the money separate, it is a hassle, but it means the social security benefits are more protected.
Good luck to you.
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