wIPE OUT BANK ACCOUNT?

[Nancy Brown]

State: Ms
I'm still trying to foresee future. Complaint and Summons by 3rd party..answered complaint with denial on each statement. Will send with Notice of Appearance. NO court date set yet.

CrCard my individual debt. Have joint account w/husband. Only income Social Security- takes every penny to survive. IF a judgement is set - can our account be frozen/cleaned out? We have no assets (home has mortgage and IRS lien; car is on a note) Can prove good intentions to pay until I lost my job. All my salary was going to pay credit cards.

[zippysgoddess]

Yes, they can still seize your bank account, and clean it out. Then you would have to prove that all the money in there came from SS, because they cannot take SS funds. It might help if you let your bank know ahead of time that your money in there is from SS, and that is your only income, show them your award letter, and any other info you have on it. Sometimes if they know that ahead of time, they will not let a creditor seize the account.

Are your checks direct deposited? If so, then you will want to cancel that ASAP, so when they get the judgment, you won't have to fight them all over again for your money each month. Once they get their hands on it, they don't like to give it up again that easily.

You can also remove your name from that bank account, if you spouses name is not on the debts, then they can't touch it if you name isn't on it.

[Krystalbubbles]

I have to agree, get your checks mailed to you ASAP. I went through the whole frozen account and even AFTER proving to the judge in the exemption hearing that the ONLY funds in the account were direct deposited social security income, he denied the exemption. The bank isn't going to help you at all. Even in knowing that the funds are exempt they will still help the collector by freezing your account, returning any and all checks you've written and basically putting you through hell the whole time. I got a lawyer and am fighting this tooth and nail. Just don't let them get you like they got me, don't trust that the bank will help you, don't trust that social security will help you, don't trust anyone but yourself when it comes to this.

[zippysgoddess]

Yep, Krystal has it. They will drive you crazy with it, while you starve, and get evicted because you don't have the money to pay your bills, and they will not bat an eye. I know stopping the direct deposit takes a month or so, but at least them you don't lose all your checks, only one or two, and what is already in your account.

[troyh41]

In the mean time, you may want to withdrawl all your money from the bank as soon as it arrives and open a new bank account.

[Krystalbubbles]

Again, I agree with withdrawing all funds from the account. However, in my experience, the collection attorney will send garnishment papers to every single bank in your area until they get a 'hit' and they will know where you bank at.

Personally, I'm not opening an account at any bank until I can be certain that their procedures are in my best interests. Such as when served with a garnishment, will they do as the last bank did and mark that the account is frozen or will they mark the box clearly posted that the funds are exempt from garnishment and state that they are social security (the judge made the mistake of giving me the garnishment papers from the bank where that was an option that the bank failed to mark).

One little thing to add, I switched my social security to a paper check on the 15th of last month. They stated that the change was made immediately and that I should receive a paper check in the mail next month, so the turn around shouldn't be all that long.