my mom is 81 owes credid card compaies money?

Question

My bank told me that in nys that they canot touch her Social sceriuty and penision check that is deposited into her acct my lawyer agreed but some banks do frezze your acct and some dont even with court orders anyone out here know for sure

Answer 1

Your mom's SS is totally exempt from seizure. As for the pension, here is New Yorks exemption laws on pensions:

Pension Plans exempt from seizure:
Employee contributions to ERISA qualified retirement plans, deferred compensation plans, tax-deferred annuities, and health insurance plans.

Also, if your mom has "ever" deposited funds into that account that did not come from SS or the allowable pension, that would leave the account open for seizure/freezing. The bank account would need to be 100% funded from SS and/or the allowable pension.

If she has ever deposited other funds into that account, have her close that account and open a new one.

If her pension does not fall under the allowable pensions, have her open an account with someone else. Have the other person be the primary on the account.

She also needs to talk to the bank (not a teller, someone higher up) and make sure that it is noted on her account(s) that the funds are exempt.

You are right about some collectors seize funds from bank accounts without court orders. It does happen even though it is illegal. Thats why I recommended speaking with the bank and having her accounts noted as exempt.

Answer 2

Credit counseling will only make the problem worse and make your mother's credit worse. It is a big black mark on your credit.

It is illegal for a bank to freeze your mother's bank account without a court order. If this really happened complain to the regulatory agency. It will be a state agency if it is state chartered, or if it is federally chartered, it will be a federal agency. Ask the bank who their regulator is, they will know.

If your mother is 81, you should be old enough to help your mother straighten out her financial affairs. Talk to her. Tell her not to use the cards anymore. Consider canceling some of the cards.

If a card is issued by a bank she has money in, they can take her money if she does not pay because she would have signed permission when she applied for the card.

Answer 3

Your best bet would be to clear the account each time her checks hit the account. That way, if a bank garnishment ever comes through (its a one time thing). The money won't be at risk. Don't carry a balance in the account...don't overdraft either.

It happened to my friend, and while the judge granted the garnishment, it was determined that it should not have been. That happens because YOU don't get to know about the hearing or testify that the garnishment is not warranted. It's a one-sided hearing.

So, while it's "Not supposed to happen", protect your mom's income and keep it out of the bank for a while.

Answer 4

you need to get a court order in order for a account freeze only the IRS can do that. now you social security could never be garnished but they dip into her penision to satisfy the debt real quick. they will find that out. you need to look at getting those debts settled, once she passes which i hope that is anytime soon. and assets she has the debts would be satisfied first. look at some credit counseling.
good luck

Answer 5

Your mom should see a credit counseling company and take responsibility for her debt. You would be amazed what a credit company can negotiate for her. If she won't do it, maybe someone should be her conservator and handle her money (finances really since she does not technically have any money)!

Answer 6

FIRST OFF YOUR MOTHER IS RECIEVING BENEFITS FROM THE GOVERNMENT; THERE-FORE SHE IS EXEMPT FROM ANYONE EVEN THE IRS FROM TOUCHING HER INCOME; AS LONG AS SHE STAYS ON TOP OF FILLING OUT WHAT IS CALLED (JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE) THEY CANNOT TOUCH HER OR HER MONEY;; IF YOU WANT TO KNOW MORE IM ME [e-mail]

Answer 7

does she need a payee to take over

Answer 8

pay off the cards for her, your her son.