Protecting Annuity from Garnishments

[JessiesGirl]

What is the name of your state? Arizona

Hi, I don't know if this is in correct section. I am not sure if it falls under debt collection or banking/credit cards, or in the annuity section.

I am expecting an annuity starting Jan. 2009. I am also in the process of trying to get SSDI. I am not approved yet for it but expect a decision soon. I understand the SSDI is not garnishable unless I owe taxes, CS, or student loans. I do not know if the annuity is safe. My paperwork from the annuity co. is vague on that issue.

What I'm concerned about is if I get a judgement from a CA and a judge orders a levy from a bank account that the annuity comes into. No other monies (except the SSDI if approved) to be deposited into that account. How do I protect that money from garnishment? The money from SSDI is supposed to be safe, and apparently it is except that CAs routinely garnish ANYWAY, which means I'll have to fight in court to get it back, taking up to 60 days to get it back, from what I've read on this forum. Plus, if that CA gets notified and then that CA sells the debt, do I have to start over on notifying? Am I ever safe from CAs? And that's just from what I've read about SSDI. What about the annuity? How do I protect that? Or can I? Am I in for a battle when these monies come in? The annuity is a sure thing, I will receive it. SSDI I don't know yet...

Sorry if not clear. Any questions please let me know. Thanks in advance...

K

 

[Dandy Don]

Is the SSDI sent to your account by electronic direct deposit or not?

What do the initials "CA" stand for?

This question should be posted on the DEBT COLLECTIONS message board so that an attorney experienced in those matters can respond.

 

[Betty]

CA - collection agency

SSDI cannot & *normally* annuity payments cannot be garnished in Az. If a judgment is rendered against you, you need to notify the creditor, the bank & the court that the only money going into your bank acct. is the SSDI & annuity money. The court usually has you sign a form that this is your only income going into the bank acct. & they will not allow it to be garnished. However, you might want to talk to an attorney - there may be some exeptions on the annuity not being garnished & they can tell you just what you have to do to keep your income that can't be garnished from being garnished.

 

[JessiesGirl]

I have not been aproved for SSDI yet but if I do I would have it put in my account by direct deposit. The annuity will be direct deposit. A CA is a collection agency. I'm worried if I post this in another section of the forum that post will be labeled a duplicate and I'll not get any more answers, so I'll leave it here.

Thanks for your answers. I hope it turns out OK.

Kathy

 

[JETX]

Simple solution... Why not just pay the friggin' judgment??

A judgment is completely different than a simple claim. A court has heard your defense against the claim and has found that you owe the other party, due to some conduct YOU did. If a judgment is rendered against you, you either caused someone else damages due to your conduct.... or spent someone else's money (credit card issuer) to get stuff for yourself.

Any responsible member of this forum will certainly not help you to avoid a valid judgment against you. Pay the judgment then you don't have to worry about your 'problem' that you created.

Also, be sure to notify the SSA that you are going to be getting this annuity. You sure don't want to scam the tax payers, do you??

 

[JessiesGirl]

2 things:

1) Disability (SSDI) is not based on assets like SSI. I thought you knew this. I am not scamming the taxpayers. I am disabled. Friggin' brain injury. By the way, it takes me about an hour to create a post, so don't bother judging me on my posting ability.

2) I have never gone to court on a judgement. Also, the bills that turned into problems are medical bills. I have no credit cards, no other debt. I also have NO friggin' income. I am living on the generosity of my new hubby. And that's it until next January, January 2009. So if I had the money, I would pay. I had a problem with my ex-hubby last year, January 2007, when most of the medical bills occurred. He had "forgotten" to pay the health insurance in Dec 2006 and January 2007, and "forgotten" to tell me it had been cancelled for non-payment. I found out about it on my 2nd day of a 3 day hospital stay when the hospital told me about it mid-January 2007. So, there. What do I do? I'm at this point thinking about bankruptcy. Also, on another post I had asked about my new hubby being liable for my bills from before being married. A creditor had taken about $30K from a bank account that I was told was his sole account, but I found later it was a joint account. I had no idea I even HAD 30K. Man, if I had known about that money (hubby told me he had a sole account but said it had maybe $1,500 in it) if I'd known about that money I'd paid the bills. I didn't know I had judgements against me at all either...I knew I owed the hospital from Jan 2007 that's all. I don't know who the creditor was but I am probably safe assuming it's the hospital bill. I also don't know if that's the end of the bill problems or not. What a mess, huh?

I now apparently have no way to pay any other medical debts (if there are any, since I am now officially broke) but did not knowingly incur them (like a credit card). I wish my ex had insurance like he said he would on me. I think he should have been responsible for the bills since it seems he caused the whole mess in the first place. We were still married when that hospital stay happened. He didn't file for divorce until March 2007. We were separated but not legally separated back last January. Just in different households at that time. Doesn't that make him at least equally liable for this as well?

I need the annuity and the SSDI to live on, and don't have either yet. My new hubby's work is sporadic at best, so we're hand-to-mouth until something kicks in. I'd like to protect the annuity and SSDI (if I get it - btw if I don't, then next step is an atty to help).

Thanks for your concerns though. Please understand that it isn't what you think...

 

[Betty]

Even though a creditor can't take your SSDI money (if you get it) & probably not your annuity income, they can seize other assets you might have that are non-exempt from seizure in your state. If you have none, there will be none to seize unless you come into some in the future. A judgment is good for 10 years in Az.

Since Az. is a community property state, a spouse can also be responsible for the other spouse's debts but usually just debts acquired during the marriage (not before) though a creditor may try going after joint assets. (ie bank acct. in both your names)

Just for your info.