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Levy social security disability direct deposit?

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Layla11

Guest
What is the name of your state? New York
I am a social security disable receiving direct deposit for nearly 20 years. Several months ago my bank account was levy because of credit card debts which I had to foward my checks to my address. Are there any solutions in having my monthly "checks" (only) going to a particular bank without having going through this problem. :confused:
 


Whyte Noise

Senior Member
You can open up a new account and deposit nothing but your benefits in them.

Credit card companies can not levy a bank account that has funds from SSI or SSD only. It's illegal.

20 CFR 404.970

SSR 79-4

Generally, Social Security benefits are exempt from execution, levy, attachment, garnishment, or other legal process, or from the operation of any bankruptcy or insolvency law. The exceptions are that benefits are subject: (1) to the authority of the Secretary of the Treasury to make levies for the collection of delinquent Federal taxes and under certain circumstances delinquent child support payments; and (2) to garnishment or similar legal process brought by an individual to enforce a child support or alimony obligation.

Section 207 of the Social Security Act provides:
"The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law."
 
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Layla11

Guest
New Account

New York,
Do you mean I can go to a different bank name and start over again with direct deposit "checks" (only) account? Are there banks that just work only for Social Security deposits and withdrawals alone without any other deposit banking? Would you happen to know which banks are they? I was told in particular, Fleet Bank. Also what can be done about the bank account still existing with levy attached to it? There is a small balance still there and I spoke to the bank several times and they say they can't do anything about it. The attorney representing the credit card creditors requested me to send them 3 months of bank statement showing social security direct deposits. I did. The attorney wanted to know what other cash deposit were, money that I deposit that came from a personal sources to pay bills and etc. I ask him to remove that levy from my account because I have my social security direct deposit coming each month and he told me no and insisted I pay that bill and he will sit on that account for a year if he has to. So that's why I had Social Security mail my checks to my address. But it's nerve racking hoping my checks don't get lost in the mail each month. I appreciate your input and thanks again.
 

Whyte Noise

Senior Member
Layla11 said:
Do you mean I can go to a different bank name and start over again with direct deposit "checks" (only) account?
Yes, you can. I opened a bank account specifically for direct deposit of my benefits. I also have another account. A joint one with my husband.

Layla11 said:
Are there banks that just work only for Social Security deposits and withdrawals alone without any other deposit banking?
Yes, there are.

Layla11 said:
Would you happen to know which banks are they? I was told in particular, Fleet Bank.
My bank does and it's a small-town local bank, not some big national "chain". I don't think it's any "specific" bank. Unless your bank requires a minimum number of deposits and withdrawals in a month...

Layla11 said:
Also what can be done about the bank account still existing with levy attached to it?
That one I can't help you with because I don't know the answer to it.
 

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