Are These Assets "Untouchable"?

[Marsan]

What is the name of your state? CALIFORNIA

I am on permanant disability. I receive a monthly Social Security disability check (not SSI) and before my illness, I took out Long Term Disability Insurance through my employer. My premiums were paid after tax. My monthly LTD benefit is not taxable. Both are deposited by electronic deposit to my checking account.

These are my only source of income. Are they considered pensions and are not touchable by creditors? Could they be garnished due to the fact they are deposited in my checking account?

In advance, many thanks.

[Ladynred]

The SSDI is definitely exempt. The LTD payments may or may not be since the money isn't from any public assistance program.

Even if it turns out that the money is exempt, once the money goes into a bank account, it can be reached by a judgment creditor. They'll sieze first, exempt or not because they don't know that, and you'll then have to fight them to get that money returned.

[debtcollector`]

Originally Posted by Ladynred

The SSDI is definitely exempt.

Not necessarily. It depends on the debt. THe Supreme Court recently ruled that Social Security benefits could be attached for defaulted student loans.

[Ladynred]

True enough. However, if someone with student loans has to live solely on SSDI and presumably cannot ever work again, then they should be applying for a hardship forgiveness of those loans - not letting the Feds take what income you have left for a debt you can never repay on SSDI.

[debtcollector`]

Originally Posted by Ladynred

Tthen they should be applying for a hardship forgiveness of those loans - not letting the Feds take what income you have left for a debt you can never repay on SSDI.

Agreed....