SSDI income and bill collectors
~*LiveLoveLaugh*~
going to court on Tuesday for SSDI. This is my second time applying, and
this time I have an attorney.
I have medical bills (tons) that have gone into collections. Can bill
collectors take SSDI income??
TIA...
--
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¸.·´ .·´¨¨))
Laurie
((¸¸.·´ ..·´
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*~*LiveLoveLaugh*~*
All that I am or hope to be, I owe to my angel mother.
~Abraham Lincoln
Relayer
No, but they can be sneaky and make an attempt through your bank
directly, which results in your account being frozen until you can get
before a judge to have him unfreeze it. The best option is to use
Direct Express, which is a pain but totally protects your $$. DO NOT
give your bank information to anyone except SSA.
Six String Stu
"~*LiveLoveLaugh*~" <nobod...@this.house> wrote in message
news:hnamaf$4d4$1...@news.eternal-september.org...
> Hello all... 'have been lurking a bit and decided to ask something. I'm
> going to court on Tuesday for SSDI. This is my second time applying, and
> this time I have an attorney.
>
> I have medical bills (tons) that have gone into collections. Can bill
> collectors take SSDI income??
>
> TIA...
>
earthpots
> Hello all... 'have been lurking a bit and decided to ask something. I'm
> going to court on Tuesday for SSDI. This is my second time
> applying, and this time I have an attorney.
>
> I have medical bills (tons) that have gone into collections. Can bill
> collectors take SSDI income??
>
> TIA...
No, they can't seize or freeze the money in your account you receive from
SSDI, and they cannot garnish benefits, that's the law. There are
exceptions: student loans and unpaid taxes are still garnishable, up to 15%
of your
benefit payment.
http://www.ssa.gov/deposit/DDFAQ898.htm
"Can Social Security benefits be garnished by creditors to pay a debt?
Section 207 of the Social Security Act (42 U.S.C. 407) protects Social
Security benefits from assignment, levy, or garnishment. However, the law
provides five exceptions:
a.. Section 459 of the Act (42 U.S.C. 659) allows Social Security
benefits to be garnished to enforce child support and/or alimony
obligations;
b.. Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334
(c)) allows benefits to be levied to collect unpaid Federal taxes;
c.. Section 3402 (P) of the Internal Revenue Code allows
beneficiaries to elect to have a percentage of their benefits withheld and
paid to the Internal Revenue Service to satisfy their Federal income tax
liability for the current year;
d.. The Debt Collection Act of 1996 (Public Law 104-134) allows
benefits to be withheld and paid to another Federal agency to pay a non-tax
debt the beneficiary owes to that agency: and
e.. The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes
the Internal Revenue Service to collect overdue federal tax debts of
beneficiaries by levying up to 15 percent of each monthly payment until the
debt is paid.
The Social Security Administration's responsibility for protecting
benefits against legal process and assignment usually ends when the
beneficiary is paid. However, once paid, benefits continue to be protected
under section 207 of the Act as long as they are identifiable as Social
Security benefits using normal banking practices. For example, only social
security benefits are deposited into a particular bank account.
If a creditor tries to garnish your social security check, inform
them that unless one of the five exceptions apply, your benefits can not be
garnished. You also may want to provide this same information to your
financial institution and seek legal assistance if you believe it is needed.
NOTE: Supplemental Security Income payments cannot be levied or
garnished."
Furthermore, those bill collectors _must_ go to court and obtain a judgement
against you in order to get an order or writ of garnishment, and/or in order
to freeze accounts and seize assets. If/when the collection agencies get
around to sueing you, you should fill out a DECLARATION REGARDING INCOME
AND ASSETS EXEMPT FROM GARNISHMENT form, and submit it with your "Notice of
Intent to Defend". You can find a free copy of one at
Scroll down to the bottom of the page, and you will find a form in MS Word
format. This one is for Washington State, but it is basically the same as
the one I used in my case last fall, when sued by a collection agency. I
acted as Pro Se Litigant, which you can do as well. You don't have to hire a
lawyer. You do need to do research and be prepared to file court documents
on 28-line Pleading Paper. Should the collectors win a judgement, you will
then have to attend a hearing in which they determine if you have any income
or assets. Some people wait until that hearing to submit a DECLARATION
REGARDING INCOME AND ASSETS EXEMPT FROM GARNISHMENT. It is in your best
interest to submit it when filing your Notice to Appear to the lawsuit,
because if they realize that there is little or no chance on collecting,
they may not want to spend the time and money sueing you, and simply drop
the suit. What you must do, if they obtain a judgement, and before the
assets and income hearing; is write a letter to your bank and give it to a
supervisor requesting that it be attached to your account. In this letter,
inform the bank that your account is not subject to freezing or seizure, due
to the fact that your funds in that account are primarily from SSDI, which
is exempt from seizure under the law. Attach a _copy_ of the DECLARATION
REGARDING INCOME AND ASSETS EXEMPT FROM GARNISHMENT that you submitted to
the court. The court, the bank, and the collection agency; have all been put
on notice that your bank account is not to be frozen or seized. If the bank
happens to ignore this, and freezes or seizes your account; you have legal
recourse against them, and they *must* return those funds in full. Same with
the collection agency.
Finally, how old are these debts? And what is the Statute of Limitations on
this type of debt in the state you live in. Here in MD, it is 3 years. If
the debt is older that the Statute, you can't be sued, and technically they
cannot even legally collect it. Should they sue, your defense is easy, the
Statute of Limitations has expired. You can look uop that info here:
http://www.fair-debt-collection.com/statue-limitations.html
Start sorting through the bills, and get a copy of your credit report from
the reporting agencies. When the collection agencies contact you, inform
them that your income consists solely of SSDI, and mail them a copy oy your
Award Letter or yearly Benefit Statement. If the bill is past the SOL,
inform them of that, and tell them to cease all communications with you.
Whatever you do, and I cannot stress this enough: DO NOT AGREE TO PAY THEM
ANTHING!!!!! Once you do that, the SOL is reset to the day you agreed to
pay. NEVER, EVER AGREE TO A PAYMENT PLAN! The exception to this, would be
if you have income or assets that are not exempt, and you want to work out a
payment plan in lieu of going to court. In that case, it is in your best
interest to work out something prior to court, as once it goes to court, the
amount they win in judgement will be considerably higher. When they call,
ask them to stop calling. Sit back, wait, and do nothing unless/until they
initiate a lawsuit. You should look over that DECLARATION REGARDING INCOME
AND ASSETS EXEMPT FROM GARNISHMENT and see if you do have any property that
can be seized, such as real estate. Unless you have a fairly late-model,
low-mileage car; they generally don't seize the car. I drive an old clunker,
so they didn't even bother considering seizing it. That form shows what the
limits are on seizing property and posessions, I basically didn't have
anything.
Feel free to ask any questions that arise in the future. You can also email
me using the address in my sig below.
--
Carol
Contessa of Consternation
Known to leave foes discombobulated
Autistic Spectrum Code v.1.0
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http://www32.brinkster.com/ascdecode/
"I have run rings around you logically". Monty Python
Email at clay_p...@nospam.com, removing the 'nospam' and replacing
with 'msn'.
someone else
> WRONG. Been multiple instances of frozen accounts by shyster,
> unethical lawyers and dumb fuck courts that just do what they
> say. You may have to go to court to get your funds unfrozen.
I have a fireproof box where I keep SS cards, birth certificates
etc. It is the modern day equivalent of the mason jar in the back
yard. If I ever had a problem financially where people were out to get
my money, the last thing I'd do is have a bank account....
Relayer
wrote:
> "someone else" <some...@microsoft.orgy> wrote innews:esQmn.18264$ND2....@newsfe05.iad:
> nuthouse or similarly indisposed?
>
> I guess you've already taken into account what happens if
> someone with a metal detector get access to your yard?
>
> Also if they get you into court to do an assets deposition,
> you will have to perjure yourself not to tell them about your
> stash. If they find out, you're in trouble.
>
> Not saying I disagree with you entirely, but just pointing
> out that your solution has some holes in it.
>
> The hardest creditor to hide from is the FEDS. If they come
> after you there is little you can do.- Hide quoted text -
>
> - Show quoted text -
You have to have at least one bank account. Just never tell people
what bank and more specifically your account number. In the end, they
can't keep it but you have to take legal action
Twayne
Relayer <relay...@aol.com> typed:
Curious: Why would you have to have at least one bank account? A fair number
of people, especially the elderly, around here don't have bank accounts. The
only downside if going out of the area and trying to cash a check where
you're not signed up, far as I know.
Twayne`
--
--
Newsgroups are great places to get assistance.
But always verify important information with
other sources to be certain you have a clear
understanding of it and that it is accurate.
Relayer
> Innews:f514c1e4-0b56-4304...@f8g2000yqn.googlegroups.com,
> Relayer <relayer...@aol.com> typed:
>
> - Show quoted text -
Mainly because some bills need to be paid by check.
someone else
Mainly because some bills need to be paid by check.
I only have two. And I could easily use a postal MO. Or just drive
over and pay cash. I do use the internet to pay all my bills on the
3rd of every month.... But there are ways to work around having to
have a bank account, I just haven't had to use them yet.
earthpots
> "earthpots" <clayp...@gmail.com> wrote in
> news:hncvu4$6da$1...@news.eternal-september.org:
Can you specify exactly what I posted that was "wrong"? rather than just
screaming "WRONG" in all caps? Because NONE of what I posted is wrong, they
are the facts, and the law, and I provided ample evidence plus links. Please
posts what you consisder to be "wrong" and your evidence to the contrary.
> Been multiple instances of frozen accounts by shyster,
> unethical lawyers and dumb fuck courts that just do what they
> say. You may have to go to court to get your funds unfrozen.
And, as I stated in my reply, if they illegally freeze your account, without
obtaining a judgement, or honoring the federal law which says that SSA funds
cannot not be garnished or seized; you can take legal recourse against them,
and the funds _must_ be returned in full. They are far less likely to
violate your rights and freeze/seize your accounts and garnish your SSA
payments, when they have been given a 'heads up' by you. Which is why I told
Laurie to send that DECLARATION REGARDING INCOME AND ASSETS EXEMPT FROM
GARNISHMENT to the collection agencies and their lawyers, the court and the
bank. Anyone who would seize/freeze or garnish, or allow seizing/freezing or
garnishing, without going through the proper legal channels, are essentially
idiots; as it will cost them money, because under the fair credit laws, they
can be sued as well, and some violations carry a minimal $1000 penalty.
And anyone who seizes or garnishes funds that they clearly have been told
are SSA funds, will end up not only restoring the funds, they will incur
courts costs and have to pay any other fees the SSA recipient incurred as a
result of their actions.
earthpots
Not going to do you any good once they get a judgement from a court and you
have to go to a hearing to determine assets and income; unless you plan on
lying and commiting perjury to the court about that "mason jar in the back
yard".
earthpots
I know of a least 1 person, who gets SSI, and has never had a bank account.
She would cash her check at the local grocer, and then get money orders for
the bills that she had to mail. Other utilities designated the local bank as
a payment center, and she would pay those in cash there. She's never written
a check in her life. And never had a bank account with money in it.
someone else
news:hnn9es$il9$1...@news.eternal-september.org...
> someone else wrote:
>> "wr" <w...@Use-Author-Supplied-Address.invalid> wrote
>>> WRONG. Been multiple instances of frozen accounts by shyster,
>>> unethical lawyers and dumb fuck courts that just do what they
>>> say. You may have to go to court to get your funds unfrozen.
>>
>> I have a fireproof box where I keep SS cards, birth certificates
>> etc. It is the modern day equivalent of the mason jar in the back
>> yard. If I ever had a problem financially where people were out to
>> get
>> my money, the last thing I'd do is have a bank account....
>
>
> Not going to do you any good once they get a judgement from a court
> and you have to go to a hearing to determine assets and income;
> unless you plan on lying and commiting perjury to the court about
> that "mason jar in the back yard".
I'm not talking about lying in court; therein is insanity. What I
am saying is that you should keep your money safe, no matter what you
have to do. If it looks like they are going to come after your savings
or whatever, take all your money and pay bills til you have no more.
Or file for chapter 13 or whatever. It is silly to have money in the
bank that some jackasss can just get a possibly bogus court order and
take. I have no problem with having spent all my money, but I will be
the one who decides where the money goes, not a court. I imagine that
everyone in this position has priorities about where they'd like there
money to go...
earthpots
I get your point. I seriously thought of pulling my funds temporarily out of
my account, and returning to a paper check from the Treasury for my SSDI, if
there was a real chance of the junk debt buyers succeeding in sueing me in
court. But I knew acting as Pro Se Litigant, and doing my research and
submitting the proper documentation to the Court on 28-line Pleading Paper;
that it was going to be ruled in my favor, if the JDB actually went through
with the law suit. I wasn't about to let them know where my income and
assets were until/unless they dragged me to the hearing for disclosure of
income and assets.
If there is a good chance that your income and assets are not exempt, and
the debt/bill collector has a valid contract with you for services rendered,
and the statute of limitations has not run out; therefore increaasing the
odds that they will obtain a successfull judgement against you; then by all
means, spend anything you have, dispose of any assets they could seize, file
bankruptcy to prevent any future seizures and/or garnishments. People should
be aware though, that rarely are these collection agencies actually,
legally, able to collect from you. They then sue, because they hope that you
won't fight them, won't show up at court, allowing them to win by default.
Rarely do the collection agencies have a valid wet-ink-signed contract that
proves you owe the debt to them. You might have owed it to whoever they
bought it from, but rarely do they get the proper documentation that
transfers the legal contract you had with the original debtor, to the
collection agency.
Also, in many cases, the debts time clock has expired according to the State
laws on Statute of Limitations. They hope you don't know about that, and
they will try to get you to pay old, expired debt. Considering the tricks
some of these agencies try, the "mason jar in the back yard" might not be a
bad idea. Unless/until they actually win a judgement against you, and drag
you into a declaration regarding assets and income hearing; you don't have
to tell them anything, and they are not entitled. Make it hard for them to
pry the information from you.
In general, tell them nothing if you are not collection-proof and have
income and/or assets they could seize. But for someone like me who is
essentially collection-proof, having exempt income solely from SSA, and
non-countable assets; telling them upfront by providing the DECLARATION
REGARDING INCOME
AND ASSETS EXEMPT FROM GARNISHMENT form will often stop them from
continueing on with the lawsuit. At first, the Plaintiff sueing offered me a
deal to settle for half. I ignored it, of course. I demanded the proof of a
contract as required under the Fair debt laws, and proof that the debt was
not expired according to MD's SOL. Since they couldn't produce proof of
either, and in court the burden of proof is theirs, they realized the
futility of sueing me, and requested that the judge dismiss the lawsuit in
my favor. I got what I wanted, as it was dismissed with prejudice; meaning I
cannot be tried for the same debt.
I do recommend fighting them, you didn't have a contract with the agency,
they bought your debt for pennies on the dollar from the original holder
that you did contract with. Your business is with the original debt holder,
not thse agencies that will attempt to use any unethical and/or illegal
strategy they can to get money from you. If I were able to pay anything,
it's to the original debt holder; not some boilerplate operation running
busuiness in a warehouse full of cubicles. Even though the Fair Debt laws
exist, these agencies hope you don't know your rights, and surprisingly most
don't. They play dirty with you, you can play diry with them. Let them work
to find the "mason jar in the back yard", and be sure to countersue for any
violations of the Fair Credit Reporting laws they commit while doing so.