Bank accounts garnished - need advice

[DepressedGranny]

Hi All,

So glad I found this forum. I have been reading posts like crazy the past two days. Have not as yet found an answer to my specific situation. So here goes.

I have been suffering under the 10 ton weight of over 75,000 in CC debt for the past 6-7 years. Have not made payments on any of this for over 5 years. DH and I decided that this Fall we would finally declare BK and get it over with. I had put-away some money for the attorney. I knew that we had a couple of judgements, but we figured we were judgement proof so hadn't done anything about them. Well, guess what? All of a sudden our bank accounts were garnished - wiped out. Yes, I know now that I should have expected this could happen. And I should have kept those accounts with very low balances. Oh well, I can't change it now.

The main questions for right now are about filing the papers for getting some of that money returned. There were 4 accounts that were garnished:
1 - my personal account ($900)
2 - our joint savings account ($1600)
3 - our joint checking account ($1750)
4 - my Mother's checking account ($4250) - (she put me on her account after my Dad died 9 years ago)

The $2500 from the first two accounts was going to be used for the BK. Poof, that's gone. It now looks like I'll have to file Pro Se.

Our joint checking account receives DH's monthly Social Security Disability check (approx $1600/month). I understand that SSDI is exempt - so I need to file a challenge on that money.

My Mother's account receives her Social Security deposit (approx $1200/month) and the remaining balance in her account was money she had received as a gift from my step-brother. Certainly her SS money should be exempt, (and I am hoping the other money will also be considered exempt) - so challenge needs to be filed for this account as well.

My questions are thus:
1 - Should I file 2 separate "Challenge To Garnishment" forms - one for our joint account and one for my Mother's account? Or do I just file one form?

2 - What do you think the chances are that the money that my step-brother gave my Mother will be considered exempt? I have had nothing whatsoever to do with her account - never put money in or took money out - she merely wanted someone on the account with her. Does the Court take any of that into consideration?

3 - Will the hearing be very scary?

4 - If the Court rules in our favor, how long before the money is returned to us?

No doubt I will think of additional questions, but at this point my brain is too tired and depressed to think of any more. I will post more about my situation, with more specific questions about Ch 7, after this current crisis has been answered. I have to file the challenge paperwork by Thursday.

Thanks in advance for your help!

DepressedGranny

[jessegirl]

Hey Granny - So Sorry to here about your problem. Although, I cannot answer your questions, my heart does go out to you and your family. Goodluck hun...

[albacore44]

Sorry to hear of your troubles. I am also in the pre-planning stages. Like you, my wifes name is on her mothers checking account at Wamu, and we will be removing it soon, as we don't want them taking her SS payments.

I have a question about what you stated above. You say you have not paid your CC's for 5 years ?? And they just now are taking your accounts ?? It just seems like a real long time between when you stopped paying, and when they took them.

My plan is to open a new checking/savings with a bank I have no CC's with. I will do that in a couple of weeks. i will leave a very small amount in my existing checking account untill all the bills clear, then just a couple of bucks. Then stop paying the CC's and wait 3-6 months and see what happens. Then file just before any garnishment happens, or my wife gets a job, and drives my disposable income up. Good luck on getting your money back.

[AngelinaCatHub]

Grammy, your accounts with SS and SSD should be challenged. They cannot levy on SS or any other retirement funds. They are exempt (except IRS).

Did the same company hit you, or several?
Being on your Mother’s account makes you an equal owner, that is going to be tough except for SS.

You are now in a Catch 22 as you need a lawyer for this stuff. Also, on the unpaid CCcards, check for Statute of limitation on those. If you bk, name them anyway. I wish you well and will check your progress. You are in the right place for help and consideration, however do not take any advice as a legal advice. We share experiences and you must glean what you can use. ‘Hub

[JRScott]

You'll probably have to challenge both of the SS ones, the others are probably gone.

I'm assuming the judgments were entered before the Statue of Limitations ran out?

Check in your area for a Legal Aide Attorney or one that might work Pro Bono if you can't afford the normal lawyer fees.

What state are you in?
How long since the judgments issued?
When did they garnish the bank accounts?

[TEW]

http://www.askmehelpdesk.com/bankrup...ent-59091.htmlI think SS is exempt until it gets into your accounts.

edit I found this

Federal law makes Social Security benifits exempt from levy, garnishment, and assignment- 42 USC 407(a) states. "In general the right of any future payments under this sub chapter SHALL NOT be Transferable or assignable. AND NONE of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levey, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law".

This means that even if a creditor or debt attorney, collection agency has a judgement against you they CAN NOT garnish your SS payments nor can they take the money from you after it has been paid to you; for example, the portion of your bank account that is attributable to your SS benifits is EXEMPT from LEVY OR ATTACHMENT.

[justbroke]

If you're in Florida, Florida has expedited hearings for garnishments from accounts which should not have been touched. I believed the emergency hearings are in 10 days or less.

[hnhlvr]

Just curious. . .how long AFTER the judgements did your money get garnished?

[DepressedGranny]

Thanks to all who replied with support and encouragement! I'll try to answer your questions.

albacore44: Yes, by all means get your wife's name off of her mother's account as soon as possible! You don't want to open the can of worms that I have opened. Regarding not paying on the CC's for 5 years: I really don't know why it took so long before we got hit with a judgment. Maybe because we don't have much in the way of assets (30 yr old mobile home on a rented space, 15 yr old mini-van, 17 yr old pickup - that's pretty much all).

'Hub: Yes, the same company hit all 4 accounts with the garnishment. I know that having a lawyer would be a good thing - but there's no money left for that now. But I did find info tonight during my online reading that may lead to finding a low-cost or Pro Bono attorney in my area. I'll be checking that out for sure.

JRScott: Yes, judgment was entered before SOL ran out. Judgment was granted in January 2007. Accounts were garnished September 24, 2008. We are in Oregon.

I am just so stressed and exhausted from all of this. And I know that a lot of it is my own fault - for a lot of reasons - procrastination, denial, etc. I just want it to be over - and I realize that I am merely in the beginning stages! I hope I survive it all.

Thanks again for your kind words. I'll keep you posted on my progress.

DepressedGranny

[JRScott]

Make sure to have your name removed from the account now, so that they can't garnish it again.

I would start new accounts at new banks. If you have direct deposited money I would have it switched as well. This goes for your mother as well. If the garnished amount does not satisfy the judgment they can seek another garnishment next month and so on.

That's a long time to get a garnishment after judgment. Still nothing illegal about the time frame as far as I know.

Here is a link to Oregan garnishment forms.

The debt I assume was not state tax so it would be I think the 3rd group of links. THere is a form for challenging a garnishment.

Perhaps it will help.