Normgreene
Member
What is the name of your state?Arizona
My uncle is getting $2400 for him and his wife from the stimulus package. They just got a default judgment against them on Mar 9 but not sure it's gone beyond that (not sure if you even get notification that your bank account is being seized).
His SSI is the only thing deposited into this account. His wife has her own account for her SSI. He gets $1500 per month from SSI. From the article below it says his account will be fine if he gets the $2400 via direct deposit (current balance is $145). It this accurate? Also, would he have gotten a notice if his creditors tried to seize his bank accounts?
Here's the article:
Special Strategy for At-Risk Social Security, SSI, and VA Beneficiaries
A special strategy for those at risk of garnishment is available for recipients of Social Security, SSI, Veterans, or certain other federal benefits. A U.S. Treasury rule exempts from garnishment an amount in a bank account or Direct Express card equal to two months of federal benefit payments for that individual. See 31 C.F.R. § 212; NCLC’s Collection Actions § 14.5.4.
The protected amount in a consumer's account need not be traced to the federal benefits—that dollar amount is protected no matter its source. If two months of federal benefits for a Social Security recipient is $2000, the account will be fully protected from garnishment if there is only $800 in the bank account before the stimulus payment is deposited. Once the $1200 is deposited, the total amount will still be less than $2000. Before the next Social Security or other benefit payment is deposited, however, the recipient will need to withdraw additional amounts to keep the new balance under $2000. Fortunately, benefit payments come on a predictable date each month, such as the second Wednesday of the month.
My uncle is getting $2400 for him and his wife from the stimulus package. They just got a default judgment against them on Mar 9 but not sure it's gone beyond that (not sure if you even get notification that your bank account is being seized).
His SSI is the only thing deposited into this account. His wife has her own account for her SSI. He gets $1500 per month from SSI. From the article below it says his account will be fine if he gets the $2400 via direct deposit (current balance is $145). It this accurate? Also, would he have gotten a notice if his creditors tried to seize his bank accounts?
Here's the article:
Special Strategy for At-Risk Social Security, SSI, and VA Beneficiaries
A special strategy for those at risk of garnishment is available for recipients of Social Security, SSI, Veterans, or certain other federal benefits. A U.S. Treasury rule exempts from garnishment an amount in a bank account or Direct Express card equal to two months of federal benefit payments for that individual. See 31 C.F.R. § 212; NCLC’s Collection Actions § 14.5.4.
The protected amount in a consumer's account need not be traced to the federal benefits—that dollar amount is protected no matter its source. If two months of federal benefits for a Social Security recipient is $2000, the account will be fully protected from garnishment if there is only $800 in the bank account before the stimulus payment is deposited. Once the $1200 is deposited, the total amount will still be less than $2000. Before the next Social Security or other benefit payment is deposited, however, the recipient will need to withdraw additional amounts to keep the new balance under $2000. Fortunately, benefit payments come on a predictable date each month, such as the second Wednesday of the month.
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