QUESTION
Can creditors attach my bank account which has my Social Security payments?
Asked on Jan 09th, 2017 on Bankruptcy - Oregon
More details to this question:
I plan on filing bankruptcy in about 45 days or so. It's not SSI. I have no other source of income. Should I tell them I plan to file or wait till I have an attorney?
4 ANSWERS
The answer to most legal questions is IT DEPENDS. If any money goes into the account other than social security, the protection that the account might otherwise enjoy can be destroyed by a deposit of $20 from bingo winnings or a birthday gift. If the social security does not go into the account from a direct deposit, the bank may not be aware that the account is eligible for protection. And some banks would rather not work to protect your legal rights and make you fight this battle with the creditor. So you may want to start by talking with your bank manager about bank policies.
Answered on Mar 09th, 2017 at 5:19 AM
In Oregon, up to $7,500 of your Social Security money in a bank account is protected from the claims of creditors, as long as you can identify that money and it is not co-mingled with other sources of money.
Answered on Mar 09th, 2017 at 5:19 AM
If your bank understands that the account only has Social Security funds, they are not supposed to allow any garnishments (other than debts owed to the federal government.) So as long as the bank knows this, you do not need to say anything to your creditors.
Answered on Mar 09th, 2017 at 5:18 AM
All social security money is exempt from creditors. If they attach the bank account, you will need to get a form from the court house and object to the attachment. Your grounds are that the money is Social Security money and protected by law. The judge holds a very quick hearing. You just need to provide proof of the Social Security monthly deposit. Yes, by all means, tell creditors you are hiring an attorney soon and filing a Chapter 7 BK (I'm assuming that's the applicable chapter in your case).
Answered on Mar 09th, 2017 at 5:18 AM