QUESTION
How can we file for bankruptcy and how can I protect our bank account from having money taken out?
Asked on Aug 20th, 2016 on Bankruptcy - Nevada
More details to this question:
My wife and I owe money on old bills and loans. My wife gets SSI and works part time. She is bipolar and has been in the hospital four times this year. We are not even sure she is able to keep her job. We got a letter today from the loan we own saying they will take the money out of our bank account. The only income coming in is her part time work and her SSI. I don't work because of my own health issues and I am trying to get on SSI. We need our money to live on.
7 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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In all likelihood, you are judgment proof ? meaning that your earnings are exempt from the reach of creditors. Do not be unduly intimidated by creditors. Generally, they are not lawyers and only care about collecting the debt. You would be wise to consult one of the law firms that devote themselves to neighborhood or poverty Law. Check your phone book, Or call your state bar lawyer referral service.
Answered on Sep 15th, 2016 at 7:08 AM
Bankruptcy Attorney serving Buford, GA
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Kenneth A. Parker, PC
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Contact a Bankruptcy Attorney now. A Chapter 7 Bankruptcy will protect her bank account from being garnished. If you have given the creditor permission to take money out of your account in the past, you must go to the bank and revoke that permission.
Answered on Sep 14th, 2016 at 5:58 PM
SSI is exempt and a creditor must obtain a judgment against you before they can levy a bank account. Work income can be protected in a bankruptcy and if you don't own a home, you can exempt well over $25,000 of liquid assets.
Answered on Sep 14th, 2016 at 5:58 PM
Unfortunately, you are not providing the kind of information I would need to to say whether you need to file bankruptcy or not. You probably should meet with a bankruptcy attorney to go over the many factors that go into determining if bankruptcy is a good choice or if other options exist. But I can answer your question about protecting your bank accounts. Make sure that the money your wife receives from SSI goes into its own account and that no money from any other source is deposited into this account. Any other money cannot be protected from a creditor with a court judgment.
Answered on Sep 14th, 2016 at 11:59 AM
Derek W. Freeman
The first thing you should do is open a new bank account and make sure that only SSI payments go into one account, and all other income goes into the other. This will protect the bank account reserved for SSI payments, since SSI is exempt from collections. Your other account will still be subject to levies and seizure, however. The only way I know to stop this from happening is to file bankruptcy. When you file a bankruptcy case, you fall under the automatic stay, which is a court order that prevents creditors from collecting from you. This will stop any wage garnishments and bank levies.
Answered on Sep 14th, 2016 at 11:59 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, bankruptcy will prevent creditors from taking funds out of your accounts.
Answered on Sep 14th, 2016 at 11:59 AM
2 Awards
You need seek counsel of a bankruptcy attorney and file to protect your assets from garnishment and seizure. SSI is exempt as is much of your other property.
Answered on Sep 14th, 2016 at 11:58 AM