LONG TERM DISABILITY - bank account garnishment

[EClady]

I reside in Texas.

My total income is from disability sources.
I receive Long Tern Disability from a private disability company (UNUM) and social security disability. Both payments are EFT'd to my bank (account established in Florida ).

Can a non-secured credit card company or their collection agency "freeze" my account by garnishment? Is their anything I can do to preempt this? It is my understanding you are not informed till after the freeze.

[annajosie]

Did the creditor obtain a judgement against you? That is the only way they can freeze your bank account.

Social Secuity disability is exempt from unsecured creditors. I don't know whether private disability income is also exempt.

I would suggest that you check court records to see if they entered a judgement.

They cannot garnish your disability checks. They garnish your wages. A judgement creditor can freeze your bank account even if the monies are from social security. You then have to prove that the money is exempt.

[EClady]

No freeze has taken place on my account yet. After getting in contact with the Legal Hotline for Texas - I am going to try to preempt any freeze, since all my funds are non-exempt, with a letter they have provided - it should work.


As long as the account only has exempt funds in it (disability pay from any source) and it is not the federal government needing back taxes or child support - that account is presumably safe from "ordinary" creditors and I could get the freeze released if one is put on -- however since I live from paycheck to paycheck - I wanted to do something to keep from the "after the fact".

This anti-garnishment letter is supposed to do the trick. I will see.
Thank you again for your input.

[ecmst12]

I don't think you can totally prevent a freeze in any case. You can send the letter, but they might still file the lein anyway and force you to defend against it. Your choices are to get rid of the bang account and do everything cash only, or be prepared to file your exemptions if the account IS frozen.