garnishment of ssi- levy of bank account

[ms1955rose]

I am on SSI Disability. I have a volantary repo. The balance is now with a collection agency called TK Financial Inc. I live in California. My questions are these:

• can a collection agency garnish my SSI benefits?

• can a lawyer or a CA levy my checking account?

I was of the understanding that SSI benefits were exempt income, but I have read some horror storys about people having their bank accounts emptied. The letters I am getting now from TK Financial are threating to have an attorney file suit, garnish and also place leins on my assets (which are none I might add). I am really nervous now and am concidering closing my checking account because of this. Wouild someone please give me the info on this please. I also found a civil code section 1812.2-1812.5 that says( at least how I read it) that after the car is repossesed, the seller cannot recover the deficiency, but does this apply to this collection agency? Thanks

[LadynRed]

SSI is completely exempt, and if it is automatically deposited in your checking account it is pretty safe. However, IF they sue and get a judgment, they can go after the account and you would then have to PROVE that all of that money is 100% exempt. You could go to your bank and make sure they know that the source of funds in the account is 100% exempt, that might help. Banks blindly give over monies when they get the court order for the levy.

A CA or lawyer can ONLY levy your account - or attack any assets - IF they sue you and win a judgment against you FIRST. They cannot take anything from you before that. IF you are sued, you would have time to get your money out of the account until you can file your exemptions to protect the funds in it.

You most certainly can be sued for a deficiency on a repo, BUT, in order for it to be legal they MUST have followed the law. That means they MUST give you the chance to 'cure' the deficiency before they sell it, they MUST send you notification of the date, time and place of the auction, and after the sale, they MUST send you an accounting of what the car sold for and what they now say you owe them. If you didn't get any of these notices, then they cannot legally collect a deficiency.

[Recovering Attorney]

I have always held the opinoin that a judgment creditor cannot garnish SSI to them, but once it hits your bank account it is fair game. Also, there is no way for a bank or creditor to know the money is only SSI money, so if they throw a restraining notice on your account,( a very simple thing to do), it becomes your job to prove the exemption.

Some people will give a trusted relative POA and open an account under the POA's name, have the check deposited in that account, and have checkwriting privileges. That way a creditor will find it hard to find your money.

I am more concerned by the threatening language in their letter. They may be making empty threats, which is illegal.

[ms1955rose]

Thank you for your responses. I have been concidering filing chapter 7. I have 3 other credit cards that I have different CAs calling on. I have recieved notices from the original creditors that the accounts have charged off. I have at least 8 calls a day collectively, so I dont answer my phone anymore. I have had a couple of nasty calls from one, and violations in contacts to my brother and also calling a 5 am. The only income I have is the SSI and there is no savings or extra in my checking account. I was thinking of sending DVs to all of them, even though they are all over 6 month old. Any other suggestions on how to proceed would be greatly appriciated. Thanks again[would you please checkout www.leginfo.ca.gov Civil Code Section 1812.2-1812.5 and let me know if i am understanding this to say that the deficiancy could not be recovered after repo and sale of car. Thank you /i]

[ms1955rose]

see last post Jan 07,05 for me, Ms1955rose regarding deficiancy on repo that is now in collection. Section 1812.2- 1812.5. Calif code.

Thanks

[missinglink]

I have a family member that is on SSI and I am their representative. I know that if she has a legal problem I can get free legal aid for her or I can go to a lawyer that handles SSI cases depending upon what the legal matter is. Many more lawyers are now handling SSI cases then ever before. Look in your phone book for lawyers that say they handle SSI.

I don't know what the laws out in California are but here in my area we can get a free consultation. You need a car to get around your disability should be reason enough, even if your legs are alright and theres no problem there. The law should be on your side when it comes to that.

Something else I know one person on SSI that drives a car and is mildly retarted. You think that she would be a danger on the rode, but quite the opposite, it would be worse for her to walk. Their are many people just like her, and the laws say, they are capable of driving and being licensed and responsible. Take another persons car away when your disabled and have them walk into unknown neighborhoods it can bring fear and anxciety to someone. They take your car away from you and something happens to you they are responsible. Understand what I am telling you?

Look in your phone book for a lawyer. Keep us updated.

[ms1955rose]

Thanks for your information regarding free legal advise for people on SSI. I hadn't thought of contacting legal aid. I can't afford an attorney so maybe I can get help through Legal Aid. I would like an interpretation of the Civil Code Section 1812.2-1812.5 regarding collection of the deficiency after the repo and sale of a car. My car has been repossesed (volentarily) some six months ago and sold. The balance is now with a collection agency . They sent me a letter saying they were refering it to an attorney to inforce collection through the courts. If someone who is familiar with Calif Civil Codes could tell me what 1812.2-1812.5 means I would be very grateful.

Thanks