Paola, an employee at Horizon Pharmaceuticals, was recently diagnosed with depression.

Vendor: IFSE Institute
Product: LLQP
Update on: Jul 22, 2025
Questions: 298

IFSE Institute LLQP Question Answer

Paola, an employee at Horizon Pharmaceuticals, was recently diagnosed with depression. She is unable to work and is receiving tax-free disability insurance benefits due to her condition. Paola is deeply indebted, and her creditors have been garnishing a portion of her pay for the last year. She is worried about her creditors also garnishing her disability benefit.

Can her disability benefits be seized by her creditors?

Yes, disability insurance benefits are seizable.

Yes, but creditors can only seize up to 50% of her benefit.

No, because the benefits are tax-free.

No, because she is disabled.