Original Creditor was CashCall, Inc. This loan was charged-off on 12/10/2010 and purchased by another lender (PMGI, LLC/WAHR Finacinal). WAHR sued me and received a judgement for the account 5/08/2012 (approx. $6,000.00), by the Law Offices of Kenosian & Miele, LLP in Santa Monica, CA. This case was tried in Superior Court - Temecula, CA.
Although social security benefits are exempt from judgment creditors, it is possible to lose the exemption by mixing bank deposits from social security with money from any other source, such as loans, gambling winnings, etc.
This can be especially problematic if you do not have a direct deposit of your social security check.
Hope this perspective helps!
Yes, unless you timely assert the exemption. It is not automatic. If the judgment creditor tried to levy on your bank account, you would have to file a Claim of Exemption with the sheriff.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.
If a creditor other than the federal government tries to garnish your Social Security benefits, inform them that such an action violates Section 207 of the Social Security Act (42 U.S.C. 407).
NOTE: SSI payments are not subject to garnishment.
Section 207 bars garnishment of your benefits. It can also be used as a defense if your benefits are incorrectly garnished. SSA has responsibility for protecting benefits against garnishment, assignments and other legal processes usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of Act as long as they are identifiable as Social Security benefits.
However, the creditor may go after your bank account or other assets. You may lose the federal Social Security protection if you co-mingle your SSA money with other monies. Check with an attorney in your state.
Federal regulations require that banks which receive a garnishment order for an account into which Social Security, VA, Railroad Retirement, or Federal pensions have been deposited, must look more closely before honoring the garnishment order. The bank has to figure out the sum of such Federal benefit payments that have been deposited to the account during a two month period, and must ensure that the account holder has access to an amount equal to that sum or to the current balance of the account, whichever is lower.
Under this new regulation, you do not forfeit your protection from garnishment by mingling your Federal checks with other money -- but there are limits on the amount of money in your account that's protected from garnishment. Only 2 months worth of benefits are protected. Additionally, don't transfer benefits to another account or else the protection is void.
Federal law says that many Federal benefit payments like Social Security benefits, Supplemental Security Income benefits, Veteran’s benefits, Railroad Retirement benefits, and benefits from the Office of Personnel Management are not subject to garnishment in most cases. This means that these funds are exempt.
Your bank may be required to automatically protect some of your Federal benefits if they are direct deposited into your bank account and you may be able to stop your creditors from taking other exempt funds from your bank account.
Disclaimer Information on this site is provided by Brian Scott Wayson as general information, not legal advice, and use of this information does not establish an attorney-client relationship. If you have questions about your specific situation, please call an attorney.
Generally, Social Security income is protected from creditors. However, they will still have a judgment which could create a lien on any real property you may own. Some judgment enforcement remedies are still available to the creditor, however, a wage garnishment and/or a bank levy is unlikely due to you sole income stemming from Soc Sec.
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