Not Paying Bills & Excess Money

[keepmine]

keepmine,

You are correct. By not paying my mortgage, CC's, and HOA fees in December and January I was able to catch up with my needs. Feb will pay for my attorney. For me the combination of mortgage, CC's, and HOA make up the largest portion of my expenses. Now that I have caught up on my needs I can't imagine what I would spent that excess money for and that was the post topic.

I cannot imagine how people go years without making mortgage payments and not having excessive money.

The Bank Currier I spoke with told me some people she knew went years with no mortgage payment and saved enough to buy
a MH with the cash they saved.

As most people who stop paying their mortgage also stop paying CC's making them subject to collections. Bank accounts are not normally protected from collections.
I have Social Security that is protected for up to two months of SS benefits.
How do people keep from losing their money to collections?

You don't lode money to collections by, not paying a collection agency. Nobody can levy your bank account unless, they sue and win. You're a long way from that happening.
Start living a normal lifestyle. Go to a movie, go out to eat, buy what you want at the grocery store insead of Ramen noodles. Buy some new clothes.

[tobee43]

just put your extra money under your pillow. this is rarely an issue in the bk courts provided you have completed your petition honestly.

[ValleYum]

The best way to protect the most amount of cash from judgement collectors is to have your SS deposited onto the DirectExpress card. No one can garnish that with the exceptions noted under Federal law ( taxes, child support, alimony, etc.). You still have to use exemptions to protect the money from BK Trustee when you file.

Info is in the last paragraph here: http://www.consumerfinance.gov/askcf...-pay-debt.html

[tobee43]

we did direct deposit on all of our exempt income. we never had a problem.

[ValleYum]

we did direct deposit on all of our exempt income. we never had a problem.

Tobee, Since he is planning to stop paying his credit cards, I think his concern is Judgement Creditors getting their hands on it once it has accrued past the 2 months worth that banks protect from garnishment.

[tobee43]

that may be his/her immediate concern, however, exempt monies cannot be levied in most every state. and, while it may happen everyday to someone somewhere it's a bi**ch getting the funds returned. we chose to simply stay away from the banks until it was just about completed. although we would cash our checks since they were accountable. however, it was clear where they were going on our petition.

worse scenario is someone gets a judgement and then it is vacated after the bk and i mean that is the worse possibility.

[ValleYum]

that may be his/her immediate concern, however, exempt monies cannot be levied in most every state. and, while it may happen everyday to someone somewhere it's a bi**ch getting the funds returned. we chose to simply stay away from the banks until it was just about completed. although we would cash our checks since they were accountable. however, it was clear where they were going on our petition.

worse scenario is someone gets a judgement and then it is vacated after the bk and i mean that is the worse possibility.

Yup - I just think it is nice that the DirectExpress card means you don't have to fight anyone over your money or wait to get it back from the bank and/or the creditor.

Hope all is well with you and yours!!

[nioka]

Thanks to everyone for your suggestions.

After reading all the posts and other advice I think it best for me to limit my checking account to Social Security only and keep the balance at or below two months of benefits. If I see I will be accumulating the maximum allowed in TN, $10k, I will opt to Direct Express.

ValleYum,

You are correct in writing I am concerned about CC collections. I know in TN my exemption is $10k but until I file chapter 7 that does not help. I am also concerned as well about what methods my HOA might use. Upside down mortgage, no assets, the HOA could stoop to the same CC collection methods. Regardless of who, I believe they will need to get a judgement before any garnishment or bank account freeze can take place and if I see that I will move my funds.

tobee43,

I like your term "pillow money." I was a little skeptical of having cash at home but after reading about people who are expecting a financial collapse and the cash they have on hand the little I have is but a pittance.

BTW, I see that DirectExpress is not without complaints. I found several where people were wrongly charged and had no recourse. However, the highest amount of a discrepancy was under $300 and that compared to a CC garnishment would be cheap if it were to happen.

[sbatman]

Direct Express Card

The answer as far as problems with Direct Express is NOT to use it as a debit card. My son takes out the one completely free (at any bank in the country) withdrawal. You give them the Direct Express Card, tell them how much cash you want and then they run it through, you sign their receipt, and you get your money with a receipt. Not a penny is taken out in service charges. You can leave however much money you want in it.

I don't use any debit cards because of a debit card that was mailed to me, was pulled out of my mailbox in front of my house. It was never activated, nevertheless, the thief was able to use it at least a dozen times. It was Hell and at least 20+ telephone calls to get it fixed. They were even able to use it after my account was closed and the bank charged me for the overdrafts on a closed debit card on a closed checking account. I have one debit card (a different bank) which I have as an emergency ATM card, but haven't had to use it in the last three-four years. If you must use a card, use a credit card, to the amount that you pay off in full monthly. If you can't do that, go to Walmart or Fry's (Kroger) to buy reasonably priced money orders for your bills. DO NOT USE THE DIRECT EXPRESS CARD AS A DEBIT CARD!!! If you have a fair amount of money in the account, using it as a regular debit card exposes your money to fraud and as, the above poster pointed out, issues with being wrongly charged.

[tobee43]

Yup - I just think it is nice that the DirectExpress card means you don't have to fight anyone over your money or wait to get it back from the bank and/or the creditor.

Hope all is well with you and yours!!

very true on the direct express. that just scared us a bit at the time. i liked sleeping on my money LOL!! now, of course it goes into the bank.

that's for the well wishes same to you and yours!!! hope 2014 brings the best of everything for you