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Joe1079

bank account with only federal funds from the us treasury directly deposited

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It just dawned on me that because I have two judgments, do I have to worry about my bank account being levied/frozen and money seized from the two creditors??

 

The money in my bank account is strictly federal disability benefit money thats directly deposited from the us treasury. Ive never used it for anything else since the account has been opened.

 

Is there anything I need to do to be proactive or prepared just incase?

 

By the way thank you to the people who have helped me with their replys in my other topics, I appreciate every one of you taking the time to reply.

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It just dawned on me that because I have two judgments, do I have to worry about my bank account being levied/frozen and money seized from the two creditors??

 

The money in my bank account is strictly federal disability benefit money thats directly deposited from the us treasury. Ive never used it for anything else since the account has been opened.

 

Is there anything I need to do to be proactive or prepared just incase?

 

By the way thank you to the people who have helped me with their replys in my other topics, I appreciate every one of you taking the time to reply.

Hi Joe from my understanding they can not touch your disability money. But if you have a home they can place a lien on the home depending on the type of debt owed.

 

 

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Thank you both Ivymgmt and creditmaze, I appreciate your replys.

 

One of the creditors that has a judgement is a debt purchaser and the other one is the original credit card issuer.

 

I just worry that they can serve a writ to my bank and county sherif to levy and freeze my bank account :(

 

Will the banks legal dept actually look at my account first? Its literally nothing but direct deposits from the us treasury dept and my cash withdrawals, nothing else.

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SS and SSI payments cannot be garnished by non-government creditors. Not co-mingling monies was a very good idea on your part.

Thank you for your reply.

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Thank you both Ivymgmt and creditmaze, I appreciate your replys.

 

One of the creditors that has a judgement is a debt purchaser and the other one is the original credit card issuer.

 

I just worry that they can serve a writ to my bank and county sherif to levy and freeze my bank account :(

 

Will the banks legal dept actually look at my account first? Its literally nothing but direct deposits from the us treasury dept and my cash withdrawals, nothing else.

 

While they can serve a writ on the bank thanks to Federal law the bank is REQUIRED to determine that the funds in the account are not exempt (which yours are) prior to freezing it or seizing the money.

 

It is important to note that only 2 months worth of benefits are exempt from levy. The good news is the majority of people on disability are living month to month and do not have any excess money. As long as there is less than the equivalent of 2 months of benefits in the account and no co-mingled funds your money is safe.

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Thank you both Ivymgmt and creditmaze, I appreciate your replys.

 

One of the creditors that has a judgement is a debt purchaser and the other one is the original credit card issuer.

 

I just worry that they can serve a writ to my bank and county sherif to levy and freeze my bank account :(

 

Will the banks legal dept actually look at my account first? Its literally nothing but direct deposits from the us treasury dept and my cash withdrawals, nothing else.

 

While they can serve a writ on the bank thanks to Federal law the bank is REQUIRED to determine that the funds in the account are not exempt (which yours are) prior to freezing it or seizing the money.

 

It is important to note that only 2 months worth of benefits are exempt from levy. The good news is the majority of people on disability are living month to month and do not have any excess money. As long as there is less than the equivalent of 2 months of benefits in the account and no co-mingled funds your money is safe.

 

Yes, it is my understanding that what CreditsucksNot has pointed out is accurate. My only suggestion here is to look into your state's statues to see exactly what other assets you have, if any, may be protected. I live in Florida and all retirement accounts--not just Social Security--but pensions, annuities, etc are protected. In addition, homes have generous protection again seizure. There are reasons why "certain persons" with judgments against them have moved to Florida.

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My DH's bank acct was garnished ten years ago by the IRS and his only source of income was SSDI. We have separate checking accts.

That money was fair game to the IRS based in my understanding.

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Thank you both Ivymgmt and creditmaze, I appreciate your replys.

One of the creditors that has a judgement is a debt purchaser and the other one is the original credit card issuer.

I just worry that they can serve a writ to my bank and county sherif to levy and freeze my bank account :(

Will the banks legal dept actually look at my account first? Its literally nothing but direct deposits from the us treasury dept and my cash withdrawals, nothing else.

I believe you are protected then. My DH rec'd a threatening letter from a non-government creditor saying his bank acct would be garnished years ago and he called up Chase and they said by law because he's on SSDI, they would prevent garnishment. We are in CA.

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It is ALSO essential to know whether you are in a jurisdiction that allows the account to be attached in the satisfaction of an outstanding judgment. Not all jurisdictions allow for this in the Writ of Execution.

 

I have no idea how SSDI reports when it is direct deposited into an account. If there is no clear indicator that it is a disability benefit, then there is a potential of it being attached and being tied up for a period of time while you attempt to prove to the Court that it was, in fact, funding exempt from attachment.

 

As noted, few people getting such benefits have much in the account at any given time, although it is not at all uncommon in jurisdictions where attachment is permitted to see Orders go out on the 1st and 15th since that is when MANY routine deposits are going to take place, no matter whether a federal check or just a plain old paycheck. I remember when the IRS did not like my math one year, they came after one of my accounts multiple times (all defeated), ALWAYS right after the first of the month. This was better than 15 years ago, but I doubt much has changed...

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SS and SSI payments cannot be garnished by non-government creditors. Not co-mingling monies was a very good idea on your part.

This is true, but I'd think once the checks are deposited, the bank account is just a bank account. If it's legal to seize the account I can't imagine it would matter where the money that's in it came from. Also, Social Security can be garnished for child support for sure. Not sure that's a "government creditor" or not, but I see that daily. SSI cannot be garnished ever.

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