Social Security Income

[Forest Hill]

What is the name of your state? Louisiana
Mother has credit card debt that cannot be paid. Recently a widow, has no home, no assets and only Social Security income.
What is the procedure by creditors to get access to her bank account, which only has social security income deposited monthly.
She was told by an attorney at least a year ago, she would be considered "judgment proof"
What exactly does that mean??
What can she do to prevent any access to her social security funds in her bank account by
creditors and/or debt collectors.

Letters have been sent to each creditor explaining her current medical and financial situation and her inability to pay. She is 88 years old, widow, and only social security income at this time.
Thank You

 

[Ladynred]

What is the procedure by creditors to get access to her bank account, which only has social security income deposited monthly.

It's called a lawsuit. They sue and win a judgment. Then and only then would her bank account be open to siezure and they will do it too. However, as long as mother can prove the funds in the account are EXEMPT SS funds, the money should be returned. The problem is that they grab first then make you fight to get it back.

She was told by an attorney at least a year ago, she would be considered "judgment proof" What exactly does that mean??

It means she has no assets or income that can be siezed to satisfy a judgment. Most people are not permanently 'judgment proof' but it sounds like your mother probably is as close as anyone gets.

Letters have been sent to each creditor explaining her current medical and financial situation and her inability to pay.

Good luck with that. Unfortunately, they won't care, all they really care about is getting the money owed to them. Depending on what she owes, they may not ever bother to sue her as there's no chance they'll ever get paid. Collection agencies will get ugly no matter what though, so be prepared to deal with them.

 

[TigerD]

To expand on LNR's final comment: they will sell the debt and it will go from CA to CA until your mother passes away. It sucks, but that's the way it is.

DC

 

[BL]

http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cfg/php/enduser/std_adp.php?p_faqid=426&p_created=973093075&p_sid=1e*46_8i&p_lva=&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9MTAmcF9wcm9kcz0mcF9jYXRzPTAmcF9wdj0mcF9jdj0mcF9zZWFyY2hfdHlwZT1hbnN3ZXJzLnNlYXJjaF9ubCZwX3BhZ2U9MSZwX3NlYXJjaF90ZXh0PWRlYnRz&p_li=&p_topview=1

Make sure the funds are identifiable as SS income .

The creditor can put a hold on ( freeze ) the account . The creditor should notify the debtor by mail . The debtor would then have so many days ( 12 - 15 I believe ) to dispute the seizer in writing .

At any rate the debtor should provide the Laws stated from the SSA site to the creditor and the bank ASAP .

Plus often times the creditor will freeze the account , and the bank will charge the account holder fees related to it . They may or may not waive those fees once the freeze is lifted .