I am on Social Security and can't afford to pay my monthly credit card payments, however I need to pay monthly utilities, prescription bills and other necessities. Somethings I can pay by cash but it would be easier with a debit card. I know the Credit Card companies can attach a bank debit card.
If the Credit Card companies can attach the prepaid debit card, how do you suggest I pay other bills without credit card companies getting to the money.
Thanks for your help.
Have the bank where your SS is deposited issue you a debit card on that account. Under federal law, the bank must protect at least two months worth of SS benefits from any garnishment attempt. Just make sure you do not deposit anything but SS benefits in that account, so your bank does not get confused about the source of the funds.
The previous answer raises a good point. Is all of your income from Social Security? If it is, it is exempt from attachment or garnishment.
I agree that you need to have a devoted account that receives the direct deposit payments and from which you pay your expenses. Do not commingle funds. That way it will be easier to keep the accounts separate and your SS funds safe.
Remember that depending on your circumstances, if you do have other assets, they may be subject to attachment if the credit card company decided to pursue its claim.
I don't really think it's appropriate to discuss with you different clever vehicles in an attempt to thwart your rightful creditor from collecting against you. While certain assets are exempt, if you're so concerned about this debt, perhaps you should just file for bankruptcy.
Also a bank levy cannot happen unless and until the credit card company has obtained a judgment in court first. In other words, they have to sue you first, get a judgment, can't just go into your bank account without an order from the court describing exactly what is owed by whom to whom. Even if you do nothing and a bank levy happens after creditor obtain a judgment, you can have account unfrozen and funds returned if you can show source of funds is Social Security benefits (although this can be very inconvenient as it takes time).
I just want to add that no one attaches or garnishes a debit card. They seize the bank account pursuant to court process following entry of a judgment. The debit card is just one of the ways an account holder gets access to the funds on deposit.
It does make sense for you to consider filing for bankruptcy. You may not need one, being on social security; but if you intend to take another job in the future, or if you have non-exempt assets, your creditors may still be a problem for you--not to mention the harassment.
Most bankruptcy attorneys offer free consultations so you can learn the pros and cons.
Good luck, John.
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