March 7, 2007
Social Security Benefit Checks are Exempt from Garnishment, but….
My husband has been given benefits but we are being advise a judgement will be placed for medical procedures that insurance should have covered but didn't. The facilty was subcontracted out by the doctor and was never given our insurance information to file on. Upon calling that insurance company, they have said that the claims is now too old for them to pay on. Can the attorney take my husbands social security benefits for the judgement.
Jonathan Ginsberg responds: Social Security benefits cannot be garnished by this type of civil judgment creditor. However, if you are using direct deposit and the Social Security funds are going into an account where you keep other money, your bank may inadvertantly honor a fi fa on the judgment.
I would consider sending a letter to the lawyer who is representing the judgment creditor to advise him that your husband's sole source of income is Social Security and therefore exempt from garnishment.
Be aware, however, that other assets - his house, other bank accounts, other assets - can still be at risk.
Another point to consider - does this creditor have a legal right to sue? Claims for breach of contract are subject to statutes of limitations. If this debt is ten years old, for example, it may be "stale" and no longer actionable. Recently, I have heard about a number of lawsuits filed on stale debt - if the defendant does not raise this issue, you could be stuck with judgments even when the underlying claim is bogus. There is a remedy to challenge this type of judgment called a "collateral attack on the judgment" but collateral attacks are expensive and time consuming.
If you receive a lawsuit on a debt that seems unusually old, it would probably be worth the time to run the case by a lawyer. My colleague Bill McLeod of Boston, regularly writes about Fair Debt Collection Practice horror stories. If you are under any illusion that collection agencies are trustworthy entities, some of the examples Bill cites of egregious actions by bill collectors will open your eyes.
If you have other assets at risk, and the judgment is large enough, a bankruptcy might be something to consider. As a rule, you are better off filing bankruptcy before a judgment is issued, but there is a procedure in bankruptcy practice called "avoiding the lien" where a judgment lien can be stripped and made into an unsecured debt.
Technorati Tags: Social Security benefits and judgments, garnishment + Social Security, stale debts, FDCPA, motion to avoid lien
Filed under Consumer protection, General consumer bankruptcy info, Protected property issues by Jonathan
Comments on Social Security Benefit Checks are Exempt from Garnishment, but…. »
My daughter was married for less than a year in 2002. In the divorce decree her ex husband recieved the car. They bought the used car for around $6,000.00. It stated she was free and clear of the car. He let the car get repossessed. He filed bankruptcy to get out of paying. They have recently started garnishing my daughters paycheck for $13,000 for the car. She is a single Mother raising a 4 year old. Does she really have to pay double for a car she doesn't own.
If your daughter was a co-debtor or guarantor on the vehicle purchase installment note and her ex filed bankruptcy to discharge his responsibility, then, yes, your daughter will be stuck with the debt.
If, however, the divorce agreement required him to pay the debt, his obligation under the divorce decree might not be dischargeable. This is probably one of those situations where your daughter ought to consult with a lawyer in your area to review all of her options.
Jonathan
Due to hear problems I am now 100% disable for life but my ex has sued to have social security automatically send a large part of my social security to her. How can this be?
i have been harass, threathen, verbally abuse by bill collector, true, i got behind in a bill, and really they refuse to set up any thype of payment plan because i am too far behind, and they want all the money, it has increase due to finance charge they keep adding, i am on ss diability, and they threaten to get by money out of the money what do i do.
My mother is on Social Security and also get a L&I Pension from my deceased fathers L&I Pension he was receiving when he was alive… We know they can't get her Social Security.
Now my mother is in debt and the family is afraid her checking account might be seize or garnished before we get a chance to make arrangements for payment for her. She has demensia so now she has a POA. Can her creditor garnish her Pension deposit from Labor and Industries.
Thanks all your help in this matter will be highly appreciated.
Mae
I have been contacted by Love, Beal and Nixon, P.C. regarding an old debt. I have been told they are ruthless and will do what they have to do to get you to pay the debt. Here is my question: I receive Social Security Disability, it is mailed directly to me. I also recieve a small retirement pension from the state of Oklahoma. As far as I've heard, neither one of these can be garnished. I feel safe on the Social Security since it is mailed to me, but by law my state retirement has to be direct deposited. I've heard that once the money gets into your account it becomes an asset and they can freeze your account. Is this true? Can they freeze my state retirement after it's deposited? Do they freeze it every month? Please help me I don't know what to do and can't afford an attorney. Thank you.
I have a son who is SSI and there is so much back child suport taken out of his check he can't even rent a room. He only gets $350 a month to live. Is this legal? He needs help and his worker said there is no help for him and his situation.
Connie, there are a few exceptions to the rule that Social Security money is exempt from garnishment. Tax debt can be collected from Social Security as can child support. If your son has past due child support, his SSI check will not be fully protected.
Assuming that his income is greatly reduced from when the original order was signed, he may want to go back to the state court to ask for a modification for future payments.