[arnghebert]

I get va and social security and a car company and their debt collection agency are threatening to sue, I called the credit agency to make payments and found this out I was wondering if they could touch my money or bank account, and I they won't allow monthly payments except like 2k a Month which there is no way I can pay, and my only option was that or a settlement so is there anyway to get them to let me make smaller monthly payments and them not to take my social security disability and veteran affairs, thanks for any help

[joypulv]

Yes, they can take some of your benefits after getting a judgment.

Was it a lease car? How much was the original amount and how much do you owe, and how long has it been, and how old is the car?

[arnghebert]

Yes, they can take some of your benefits after getting a judgment.

Was it a lease car? How much was the original amount and how much do you owe, and how long has it been, and how old is the car?

It was to own, original amount was 27500 they they sold it for 14700 they say I owe Around 13300 it was in 9-2008 when it was repossessed the car was a 2008 model

[arnghebert]

I live in Arkansas if that makes a difference

[ScottGem]

So the car was repoed, but there is still a balance on the loan. Yes, they can sue and win a judgement. In which case they can seize your bank balance even if some of your income comes from exempt sources.

If they get a judgement you need to inform your bank at all funds deposited are from protected sources and then ONLY deposit such funds.

They do not have to accept a settlement. You purchased the car and couldn't pay for it. They took it back sold it but didn't recoup enough to cover the loan. Very common and you are liable.

[arnghebert]

ScottGem my benefits are direct deposit does that make a difference both social security and veterans affairs

[arnghebert]

All of my income comes from those sources also if maybe that makes a difference. I really really appreciate all the information

[joypulv]

What's vital is that your benefits be DIRECT DEPOSIT.
From veteranstoday.com

"The new policy became effective May 1, 2011, and requires banks to review accounts when they receive a garnishment order. If the account contains federal benefits from any of the following sources, then the bank must protect those funds:
Social Security,
Supplemental Security Income,
Veterans Affairs, Railroad Retirement,
Railroad Unemployment Insurance
Civil Service Retirement System and Benefits from the Office of Personnel Management or
Federal Employees Retirement System.
Well, at least a portion of them. In order for the federal benefits to qualify for protection, they must be directly deposited into the bank account. Federal benefit deposits made by check do not qualify for protection."

[ScottGem]

Joy, that's very interesting. Can you supply a direct link. My question here is WHO'S policy? Is the a requirement from the Feds for federal banks? Is this just a guideline? If its only the Feds it won't apply to State charted banks.

Arn, You should make sure your bank is aware of this. Also you cannot deposit ANY other funds since once you commingle funds it becomes difficult if not impossible for the bank to verify the source.

[joypulv]

Veteran

[arnghebert]

I never ever put anything in my bank except what they direct deposit guess I will go to the bank Monday morning and let them know, thanks for the help, it is kind of confusing how the laws work as far as that government statement

[ScottGem]

What Joy posted is clear. Banks should not freeze or release funds that come from any of the listed sources. What is not clear is who is establishing the policy and how binding it is in banks to comply.

[joypulv]

http://www.fms.treas.gov/greenbook/g...arnish0311.pdf

See page 3.

[ScottGem]

Ok, thanks. The way I read that, the financial institution must leave an amount no less than the amount of exempt payments made during the last 2 months.

So, if there was more in the account, it could be taken. However, these rules don't apply if the creditor obtained a Fed benefit garnishment.