Ask Me Help Desk - Disability and judgement

Disability and judgement

I received a judgement today on an old credit card debt. This debt and judgement was only on me although I am married. My husband receives disability benefits from Social Security, disability funds from his state pension fund and also monies from his former employer's disability insurance. I do not work as I need to care for him full-time thereform I don't have any income.

We do not own a home and our vehicle is older but in both names. Can the creditor garnish any of our bank account since my it's my husband's disability income?

If you ever get any income from any sources that's not traceable to his disability... they can take that.

Did you go to court when they were suing you for this debt? That's the time to discuss with the court the reasons you didn't pay, and your income circumstances. Now that there is a judgment, you have to pay it or you will be in contempt of court.

If you can't, you better go see an attorney to get this straightened out.

Never ignore a notice to appear in court. Not going always makes matters worse.

Yes, this was a court judgement today. I answered all letters from collection agency, went to pre-trial and trial. Judge said everyone has issues. Did not matter that I had financial issues. Advised me to file bankruptcy. So contrary to everything I've read, it makes no difference if I went to court or not.

Now to my questions, can bank accounts be garnished?

Quote:

Originally Posted by Shelona

Yes, this was a court judgement today. I answered all letters from collection agency, went to pre-trial and trial. Judge said everyone has issues. Did not matter that I had financial issues. Advised me to file bankruptcy. So contrary to everything I've read, it makes no difference if I went to court or not.

Now to my questions, can bank accounts be garnished?

Yes... VERY easily... they get a judgement... then they ask a court for a writ of garnishment, and almost always get it... you really don't have anything to say at that point. There is very little income that's off limits.

Quote:

Originally Posted by smoothy

Yes....VERY easily...they get a judgement...then they ask a court for a writ of garnishment, and almost always get it...you really don't have anything to say at that point. There is very little income that's off limits.

So they can garnish a joint bank account that contains only my husband's disability monies? Everything I've read says no.

Quote:

Originally Posted by Shelona

So they can garnish a joint bank account that contains only my husband's disability monies? Everything I've read says no.

You would have to prove its ALL his disability money... they don't have to assume anything. If it is it should be easy to prove.

Deposits and withdrawals won't exceed his monthly checks.

Also Meaning if YOU deposit money into it,. mix it with his... it doesn't make yours untouchable. Best to get your name OFF that account all together and save the aggravation.

Quote:

Originally Posted by dontknownuthin

.... Now that there is a judgment, you have to pay it or you will be in contempt of court. ....

Incorrect. A money judgment is not an order that you pay the judgment creditor. You will not be held in contempt if you fail to pay. It is however authorization for the creditor to seize the judgment debtor's non-exempt assets.

Remove you name from the bank accounts because right now they could levy upon all bank accounts and force your husband to try to prove the money is his.

It depends upon the state, but usually an older vehicle is exempt from execution, assuming it's value is less than the exemption amount for vehicles.

Quote:

Originally Posted by Shelona

So they can garnish a joint bank account that contains only my husband's disability monies? Everything I've read says no.

Everything you have read probably states that his disability is exempt from garnishment. This is true. But once deposited in a joint account, the funds are considered commingled and if the bank receives a writ of execution they have to honor it. So what I would do, is remove your name from the account, even better close it and transfer everything to a new account in his name only.

If you need to access the account have him give you a limited power of attorney to make withdrawals. Then the judgment can't touch the account.

You can try informing the bank in writing that the only monies deposited are from exempt sources and they should not honor any writ, but that doesn't always work.

The bottom line is, if a writ is executed you can probably get the money back by proving its source. But in the meantime you will lose access to the money. So its better to be proactive and remove your name from the accounts to protect them.