| can a creditor garnish a bank account if there is a payment agreement?
A while back I asked a question for my friend who is disabled on social assistance, and was being bothered by creditors. Well, since that time, she has made arrangements with the creditors and is paying them $25 a month towards her debt, which is all she can afford with her low income. The collection agency had a writ against her, but they were not able to collect on it was because she has no bank accounts or other assets. However, she recently found out that she qualifies for the Saskatchewan Rental Housing Supplement, a program that helps disabled people live in a decent apartment / building. She sorely needs this money. The catch is, she now needs a bank account, as the monthly benefits must be direct-deposited. My question is, can the collection agency seize her bank account, even though she has a payment agreement and has been sticking to it?
There is a possibility that she can get the housing supplement mailed to her rather than direct-deposited, but she needs a good reason. Is having a writ from a collection agency a good enough reason? Is her money in jeopardy? Thanks for any help or suggestions.
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