Can inherited money be garnished for unpaid debts?

Inherited money can have a big impact on your budget, but that doesn't mean it's automatically shielded from creditors. Dragon Claws/Getty Images With inflation elevated and now climbing , borrowing costs remaining high and household debt balances growing, most Americans are feeling at least some of the pressure this economic landscape is putting on their finances. In turn, receiving an unexpected financial windfall via an inheritance can feel like a rare opportunity to regain stability right now. Whether it's a cash inheritance from a parent, a life insurance payout or the sale of inherited property, that money can come in handy to pay your bills, build your savings or strengthen your long-term financial security. But whatever the source, receiving inherited money can also raise difficult questions, especially for those who are already struggling with unpaid debt. And, there are a lot of people dealing with that particular issue right now, considering that household debt is at a record high and delinquencies are ticking upward in tandem. If you have old debts that have been lingering for years or have recently fallen behind, though, you may wonder whether creditors can intercept some or all of the money you're about to receive. After all, debt collectors have many tools to collect what you owe, including levies, garnishments and asset seizures. What you may not realize, though, is that those tools have limitations. …