I am insolvent (myasserts are nil), My only income is Social Security and a State pension.

I may have temporary balances in a Bank checking account derived from these protected sources. Can they be levied against following a default judgement stemming from credit card debt?

For your information about Social Security Benefits


Safe from Garnishment



Federal law makes Social Security benefits exempt from levy, garnishment, and assignment- 42 USC 407(a) states. "In general the right of any future payments under this sub chapter SHALL NOT be Transferable or assignable. AND NONE of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levey, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law".

This means that even if a creditor or debt attorney, collection agency has a judgement against you they CAN NOT garnish your SS payments nor can they take the money from you after it has been paid to you; for example, the portion of your bank account that is attributable to your SS benefits is EXEMPT from LEVY OR ATTACHMENT

While Mr Yet is correct, your bank does not know that the sources of your deposits are protected. So if they are served with a writ of attachment, they will normally freeze your account. What you need to do is provide the bank with a letter stating that the only monies deposited in the account are from protected sources.

Quote:

---

Originally Posted by ScottGem

While Mr Yet is correct, your bank does not know that the sources of your deposits are protected. So if they are served with a writ of attachment, they will normally freeze your account. What you need to do is provide the bank with a letter stating that the only monies deposited inthe account are from protected sources.

---

My bank will not accept such a letter, since they say that the are obligated to impose the levy anyway.

Since my account is comingled, can an isolated non exempt account be selected fron any statement, whether current or past? The amounts would be nil compared to my debt.

Akso, I do not expect any current or foreseeable statement to contain a balance to cover the whole debt. How does my creditor deal with that?

They will freeze your bank account, and then you will have to prove to the courts which part is your social security and which part of the other money. They will take as much as allowed. They may look at other garnishment of non SS incomes.

Quote:

---

Originally Posted by Fr_Chuck

They will freeze your bank account, and then you will have to prove to the courts which part is your social security and which part of the other money. They will take as much as allowed. They may look at other garnishment of non SS incomes.

---

Do you mean that the court will require that I divulge all non exempt deposits to this and other possible bank accounts for X number of years? And that these could be garnished? Doesn't a deposit "vanish" after it is withdrawn and spent?

No garnishments have ever occurred

No they probably wouldn't go back, but you would have to account for the deposits currently in the account.

If your bank will not accept such a letter, then I would change banks and find one that will.

Quote:

---

Originally Posted by ScottGem

If your bank will not accept such a letter, then I would change banks and find one that will.

---

I would not change banks since I feel that they their opinion is reasonable, Any bank can "accept" a letter, but not be cooperative with the depositor should should the occasion arise.

Its up to you what you want to do. And, yes its possible a bank would accept the letter but then lose it when a writ comes in.

But it seems to me its worth the risk because it will be a lot harder getting your money unfrozen and you will be without it for that time, then trying to take affirmative action to prevent the writ from being executed.