I just have been approved for SSDI, I will be receiving a 30 month back payment. My fha home with was purchased in 1998 with my ex husband being primary lender and myself co borrower was forclosed on on November or December 2018. Can the bank take all of my back payment?
SSID payments are mostly off the table for debt collectors via garnishments.
However, when you say your home was foreclosed on, does this mean the foreclosure sale took place and there is a deficiency judgment? Or did the bank file a foreclosure proceedings and you are still in the process such as conference?
If there is a deficiency the bank can seek a judgment and then a garnishment but SSI is not something they can take. However note if this money is in an account with other funds it will be on you to show the funds are SSI. In these situations I always suggest a person have two accounts one for SSI and other such funds and one for any other household funds.
Now if you are still in the process of the foreclosure action you may consider talking with a foreclosure attorney and seeing if you can save your home with a HAMP with the income and extra money this might be possible.
best of luck
No, they cannot take your back-payment. SSD/SSI payments are completely exempt from most creditor collections (other than certain types of taxes, fines, and child support, that is).
With this being said, it may be wise to consider a bankruptcy filing. You'd be able to preserve the back-payments, while also eliminating the balance of your debts - including those deriving from that foreclosure. Think about it this way... this could be your opportunity for a fresh financial start.
Make sure to consult with an attorney before you commit to any particular game plan.
Good luck with your case!
Jonathan D. Warner, Esq. is an attorney who is licensed and admitted to practice in the State of New York, U.S. District Courts for the Northern, Southern, and Easter Districts of New York, and U.S. Tax Court. This answer is provided only for informational and/or entertainment purposes only. It should not be relied upon as legal advice, which can only be offered to clients in an office consultation setting, after all of the facts and circumstances of a case or controversy can be fully considered and reviewed. No attorney-client relationship should be inferred by virtue of any answers posted. Before commencing any legal action or assuming any legal position, an attorney licensed in your jurisdiction should be consulted beforehand. We are a debt relief agency and help people file for bankruptcy.
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