my wife is on social security only we lost medical coverage when the comp. I work for filed Bankruptcy. One collection agency threatened to sue if I wouldn't let them take it out of my pay. My wife has over $20.000 in medical bills we have been trying to pay but can't keep up. we are at a loss and don't know how to handle thi.My pension is payed by the PBGC and is controlled by the US Government and was cut $900 amonth since I retired.
Talk to a bankruptcy lawyer and file bankruptcy.
Second, they cannot touch any Social Security. However, receive and keep the Social Security income in its own account and do not mix it with the pension money.
They cannot garnish the pension money directly from the government. However, they can garnish that pension money if it is in a bank account. Simply have your pension check mailed directly to you. Screw them. Give them nothing. They can sue all they want; you cannot get blood out of a turnip; nor a Social Security check; nor a pension check that never hits a bank account.
This advice is for general informational purposes only and does not create an attorney - client relationship. You should consult a local attorney for specific advice about your legal matter.
f 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 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.
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.
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