They can sue you, and receive a judgement, but they can't get any money out of an account with SS funds. This doesn't mean someone can commit fraud--run up cc debt and plan to default since they're on SSD. The more likely scenario, is that a person defaults while waiting for SS approval. The creditors won't forgive the debt, but once the statute of limitations expires, they can no longer receive a judgement. The higher the debt, the more likely it'll be pursued. Collection Agencies will keep trying to collect well after the SOL, and sometimes even after debts fall off credit reports. They pay pennies on the dollar from original creditors and often violate state and federal laws.