social security or disability

Can ither one of this be garnish??
Thanks in advance:unsure:

They cannot be garnished directly (i.e. a creditor cannot go to the social security administration and serve a writ of garnishment to have the SSA pay the creditor). But, depending on where you live, once the money hits your bank account, the burden falls on you to claim the exemption if the creditor serves a writ execution on your bank and cleans out your bank account.

Also, there may be exceptions for things like Child Support and Spousal Support (but I don't know for certain).

If you have your disability or social security deposited into an account WITH NO OTHER FUNDS, then technically the funds cannot be garnished or levied. However, unless you notify the bank that the funds are 100% exempt, a creditor could still try to levy the account. The good thing is that by having that money alone, you file an exemption with the court. When you show the money is from an exempt source, it will be released back to you.

I actually have 2 checking accounts now because I got a seperate account for my SSDI. And when I opened the account, I asked if they could put some kind of "note" on my account that it is strictly SSDI and is exempt from any garnishment or bank levy.

If you have your disability or social security deposited into an account WITH NO OTHER FUNDS, then technically the funds cannot be garnished or levied. However, unless you notify the bank that the funds are 100% exempt, a creditor could still try to levy the account. The good thing is that by having that money alone, you file an exemption with the court. When you show the money is from an exempt source, it will be released back to you.

I actually have 2 checking accounts now because I got a seperate account for my SSDI. And when I opened the account, I asked if they could put some kind of "note" on my account that it is strictly SSDI and is exempt from any garnishment or bank levy.

This in no way means the funds are safe. If the bank is served a writ they will comply, SSA or not. It's up to the account owner to file the exemption after they get robbed by whoever has the judgement. The banks will not play the exemption card on your behalf when the writ is served.

If you have a bank that has guaranteed you that SSA funds will not be touched, and they will not honor the writ, please tell us that banks name. I'm sure alot of us would like to know. The reason I ask this is I doubt what you're saying as fact. Some low-level schmuck, at the banks call center, may have told you this. There's just way too much case law out there that says banks will not cover your butt on this matter. So, please tell us the bank that is making this claim.

I never said the BANK claimed my money was safe from garnishment or levy. Read my post again, I asked them to put a note on my account but I have no idea if they complied. After I finally had my ALJ hearing for my disability, my disability atty told me if I put the funds into an account that had no other funds, then it was exempt from garnishment or levy. SSA also confirmed that the funds are exempt. Also, check your state because you might be able to file papers pre-emptively declaring the money in that account as exempt funds. Since I just filed BK, I haven't bothered to see if that is possible in VA but I did read on a message board for people on disability that one person had done so and then served a copy upon their bank. It basically served as an injunction when a creditor tried to levy the account.

And if you read my post, I very clearly said that you file an exemption with the court if the account does get levied so your money can be returned.

The FDIC knows that levy's and garnishments on exempt funds is a problem. Maybe if enough people start sending letters to the FDIC and their elected officials a change could be enacted. It's definitely worth taking the time to draft up your concerns and sending some letters.

For your reading pleasure:


http://www.fdic.gov/news/news/speeches/chairman/spsept2007.html