I am unable to pay my credit card depts, can the credit card companies attach my social security check?

Question

I have 2 credit cards that are asking 18% interest and I have paid on them for 2 years without any money going to the principal. I am getting nowhere by paying the minimum each month. I have been needing to pay on hospital, doctor and medicines leaving me unable to continue payments to the credit cards. How can they force me to pay if my only assets are my home and retirement social security. I would appreciate any answers to this. Thanks

Answer 1

The creditors are not allowed by law to attach your ss check. That said, be careful. Is your ss check automatically deposited into a checking or savings account? If so, the moment the funds enter into any of these accounts they become fair game for a creditor to garnish. To do so however, the creditor must have a court ordered judgment against you that is unless the credit card company is also the provider of your checking and or savings account in which case they will have the ability to use the "right of offset." This simply means that the financial institution can move funds from your checking or savings account to repay debts owed to them without having to go through the court system. Since you are a homeowner, a creditor can in fact place a lien against your property yet this is unlikely to happen unless your credit card debt is unusually high. Assetts such as automobiles, motorhomes, atv's etc. with your name on the title are all fair game for the determined creditor that has a judgment against you. Bottom line from many years in the finance business is that unless your credit card bills are exorbitant you will receive pesky phone calls and numerous letters from the creditor{s.} Most likely the creditors will simply show your accounts as charge offs on your credit reports. As a foot note, only the federal government can withhold monies from your ss check. This can be done in cases involving the IRS, overpayment of benefits, etc. Take care and be careful where you place your ss benefits. Final suggestion, Receive the check direct, cash, and manage the monies from there.

Answer 2

I'm not going to harp like other posters here; just giving the straight edge. If you can eat into the principle on the debt just slightly each month by cutting any unnecessary spending then do it now. Depending on how much debt and home equity you have, refinancing your mortgage if that is still possible at this stage could be a viable option to rid yourself of this debt. If this is not an option and you cannot honestly pay down the debt then you could consider bankruptcy. This is a drastic measure and should not be taken lightly. Unfortunately you are not alone having medical bills keeping you in the red. Unexpected medical expenses are one of the primary reasons people end up in bankruptcy. While this measure will either erase your debt entirely or allow you to pay a certain percentage of income to pay down the debt without harassment, it will not protect you from future debt (such as future medical treatment). Creditors usually cannot take your home but you would want to consult a bankruptcy attorney in your state. Whatever you do, keep up on the mortage payments if you still have them. It sounds like your home is your only nest egg so you definately don't want to lose it.

Answer 3

There probably is a credit counseling service in your area. There is one where I live called Consumer Counseling Credit. You make an appointment and bring in proof of income and all of your debts. They will work out a payment plan with all of your creditors (credit cards, hospitals and doctor's bills). They will work out a fair payment plan, leaving you money for your medication and monthly expenses. Most of the time, the credit card companies will lower the interest rate after three months of steady payments through the credit service. Keep in contact with the credit service in case you accrue any more hospital bills, they will continue to help you.

It is easy to get into debt with credit cards with high interest rates but many of us have to use them when we have emergencies.

If for some reason you cannot do this, call and talk to the credit card companies and work out a plan for lower payments. They will do that. However your best option would be the Consumer Counseling Credit type services.

Good luck to you.

Answer 4

The credit card companies can NOT attach your social security check until they obtain a court judgment against you.

However, even if they do get the court judgement against you, they must go back to court again to get an order to garnish a portion of your Social Security check and you will be notified well before that takes place because you will be entitled to a hearing.

They can only garnish up to 20% of your SS check UNLESS -- UNLESS

it is an SSI (welfare) check which means you are at or below poverty line to begin with. No garnishments can come out of SSI (welfare) checks.

However, garnishments can be made out of regular social security and disability checks.

Answer 5

Not unless they take you to court to do so. It won't just "happen" in the middle of the night.

I would suggest calling the companies and working out a mutually agreed upon settlement where they close the account and you make reasonable payments, where anything is better than nothing at all.

If you work with them, stay in communication with them, they are less likely to want to take you to court-thereby protecting your SS check.

Answer 6

Try to work something out with the company. They can put you on a plan where you pay no interest or fees for a certain amount of time, and can reduce your payments as well.

Answer 7

You can only borrow what you can repay. You can only take what you can give back. You cannot waste somebodys time because you are not able to REPAY TIME itself, that is you cannot generate time, or "young-ify" a person, Person grows older and older in one way street, your current technology does not know how to make a person YOUNGER or GO BACK IN TIME so you must play AGAINST TIME.

In your case why did you borrow (waste time) if you are not able to repay? That means you must serve the credit card company until you repay the debt you owe.. You can work (serve) for them with nothing but subsistence allowance and they will deduct what you owe from your salary (the money you earned while in jail)

Answer 8

Sell your house!