Social Security Disability and Validation

[mountaindont]

I live in Ohio. At the end of December 2010 I received a letter from a legal firm from my state informing me they were attempting to collect a past debt on behalf of their client Atlantic Credit. About a week later I sent the request for debt validation via registered mail. I heard nothing from them until about 70 days(mid March 2011). They basically sent copies of what appears to be 3 past billing statements from the original credit card company. In 2007 I went on Social Security disability(SSDI). I mentioned this fact in the original letter when I asked for debt validation from this collector.

My question is, what should be my next step with this collector ? Is it true that I am exempt from the collection because I`m on SSDI but my assets are not? Other then my home I really don`t have any assets. I did inform 2 of the 3 credit bureaus in January 2011 that I am on SSDI. Any Advice you can pass along would be appreciated.

[nobk4me]

Creditors can't touch your Social Security benefits. But that won't stop them from trying. You will need to protect your bank account(s). I would recommend the Direct Express debit card, onto which the SSA will deposit your benefits monthly. There is no question that this account contains only exempt funds.

Creditors still can go after your assets, however. But Ohio law does provide for exemptions from a judgment. In 2008 SB 281 was passed which raised Ohio's exemptions to be in line with the federal bankruptcy exemptions. For your home, around $20,000 of equity is exempt.

[mountaindont]

Creditors can't touch your Social Security benefits. But that won't stop them from trying. You will need to protect your bank account(s). I would recommend the Direct Express debit card, onto which the SSA will deposit your benefits monthly. There is no question that this account contains only exempt funds.

Creditors still can go after your assets, however. But Ohio law does provide for exemptions from a judgment. In 2008 SB 281 was passed which raised Ohio's exemptions to be in line with the federal bankruptcy exemptions. For your home, around $20,000 of equity is exempt.

Thanks for your info. You seem very knowledgeable about this subject. Can you please expand on "protect your bank accounts" I understand the idea about the Direct Express debit card. How else can I protect bank accounts ? any info you have would be appreciated

[nobk4me]

Basically, don't keep any more in a bank account than you can afford to lose. You may have to go to a cash and money order basis.

And, if you have used a checking account to pay a creditor, open a new one, at another bank.

I would recommend going to www.debtorboards.com, where there is a section about becoming judgment proof.

[HoppinMad]

Is Atlantic Credit the original creditor or did they purchase the charge-off debt from the OC?

[Linda7]

Whatever you do - don't comingle funds with anyone either. They will swoop in and get everybody's money from the account. And if you have an account, make sure there are "no" deposits ever put into that account except from social security, then by law - it is protected.

Also remember, that even having your social security money exempt - that won't stop a lot of creditors from seeking a judgment anyway. They think if they get a judgment that one day you may inherit property or money or something and if you do - that judgment will be sitting right there to take whatever you inherited. And even though the judgment can run out - they can be renewed indefinitely. However, if you get a judgment against you - you can always file BK to get rid of it.