Will creditors come after my bank account if I am on SSI? 9 Answers as of February 01, 2012
I had a consultation not long ago with a local bankruptcy lawyer. My mom went with me. My only income in child support and SSI. The lawyer said as long as that is my only income none of the creditors could do anything. If I got a job though they could possibly garnish those wages. Question is, a lot of the creditors I'm in debt with are department stores. Also,2 local banks. I got credit cards through them and could not pay them off. I bank at one of the banks I got the debt with. I got a letter from an attorneys office locally saying I had to pay them 25 dollars a month on the one of the bank debts, which is the one that I bank at. So I have been paying them 25 a month and the other bank, directly to that bank 10 dollars a month. Since my mom went with me she said the lawyer said I did not have to pay any of the debts as of now because I only have SSI and child support and they can't touch that. My mom said the lawyer said i had to keep paying the banks though. I did not hear her say that. So I have continued to pay the banks. I called that lawyer this morning and she said I could call the law office my bank has me paying off my debt at and explain my situation. She also said if I bank with that bank, they could take the money out of my acct if I don't pay. So if the bank can do that, why can't any other creditors I owe do the same thing? When I first saw her at the free consultation she said no one could touch my money because it was only SSI money and child support.Free Case Evaluation by a Local Lawyer!
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Janet A. Lawson Bankruptcy Attorney | Janet Lawson
STOP PAYING THEM. Your mom got it wrong. They can't touch your SSI and the child support. Start logging all calls, write down the date and time of each collection call. After you have 6 months of collection calls, see a lawyer who handles "Fair Debt Collection Practices Act" cases. You then can sue them for harassment.
Answer Applies to: California
Replied: 2/1/2012
J.M. Cook, P.A. | J.M. Cook
Go back to the lawyer and pay her to file a Chapter 7 for you to discharge the debts before they are reduced to judgments.
Answer Applies to: North Carolina
Replied: 1/31/2012
Mercado & Hartung, PLLC | Christopher J. Mercado
Your income is likely exempt.
Answer Applies to: Washington
Replied: 1/27/2012
Law Office of Susan G. Taylor | Susan G. Taylor
It is never a good idea to bank where you have any other credit obligation. And, warning, creditors lie to obtain payment from you. I do not believe the bank can offset your account if all funds are traceable to child support/Social Security benefits, but why take the chance? Change banks.
Answer Applies to: Texas
Replied: 1/25/2012
Buff & Chronister | G. Scott Buff
If your only income is child support and SSI, that income is exempt from creditor's claims. However, since you have funds on deposit with one of your creditors, it sounds as if that creditor has taken the position that they have a possessory lien on those particular funds and that those funds secure the debt. It would be wise for you to find another bank and transfer those funds you now have on deposit with that particular creditor.
Answer Applies to: Georgia
Replied: 1/24/2012
Diefer Law Group, P.C. | Abel Fernandez
The very simple response to this question is that if it is only social security income your creditors cannot take the funds. The problem is that your creditors do not know what type of income you have. It is likely that your accounts would be frozen and then you have to dispute it based on the fact that it was social security income and exempt from creditors. This can be a big hassle for you. I might still recommend you file the bankruptcy so you don't have theses issues.
Answer Applies to: California
Replied: 1/24/2012
The Law Offices of Kristy Qiu | Mengjun Qiu
Those funds are protected from the creditors' hands. When you choose to have an account with a certain bank, they have the option to off set your debt with the funds you deposit with them. It doesn't mean that if you have a credit card with Chase, and an account with Chase, for example, then Chase will be able to off set your credit card debt with the funds in your account. It only means that if you have a credit line or debt directly tied to that bank account would they be able to off set. However, Since those funds are protected, even if they do proceed to off set the debts, you have the option of fighting in court and getting them back. The same goes to any other creditor, although they don't have the convenience of off setting your account, they can still obtain a judgment and putting a lien on your accounts were your funds not protected.
Answer Applies to: Florida
Replied: 1/24/2012
Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
Normally no one can garnish Social Security, but often banks (usually actually credit unions) cross-collaterize accounts so that if you don't pay for a loan, they can take money out of other accounts where you have money. I would immediately start banking elsewhere, as in where you don't owe them any money.
Answer Applies to: Michigan
Replied: 1/24/2012
The Law Office of Darren Aronow, PC | Darren Aronow
She is correct except the bank is not allowed to take money but generally will take it from your account. You should have your SSI and child support deposited into a bank that you have no account with and then as she told you, you are considered uncollectable debt right now since you have no job and your income is SSI and child support.
Answer Applies to: New York
Replied: 1/24/2012
