Expert: Creditwrench - 11/12/2008

Question
QUESTION: I have been getting LTD sine 2005. They made me apply for SS. I got approved and received a large lump sum $50000.00. LTD want the whole check and they want it now. They made me sign a form saying I would repay them if I got approved. If I don't pay them what can/will they do to me? Can they garnish my SSDI checks? Can they take my home? I have never had much money and I could make my life so much easier with this money. Thanks!

ANSWER: If you don't pay them they will probably file a lawsuit against you but they can't enforce that agreement. Agreements which agree to that which cannot lawfully be done can't be enforced. It is illegal to garnish any SS money. On the other hand, judges have been known to order pensioners to pay and hit them with contempt of court if they don't comply, sending them to jail until they do comply. I would make absolutely certain that the bank account where the money is contains no money other than SS money.

Make sure that the bank is aware that the money in that account is SS money.



---------- FOLLOW-UP ----------

QUESTION: Thanks so much for the advise. So they will sue me and a judge could make me pay and if I dont I could go to jail? Thats harsh. So I probably should just surrender my lump sum? I imagine they are pretty nasty when you dont give thm your money.

Answer
Do what you think best but I sure would not surrender that kind of money. I'd fight them to the death. After all, the judge might not do that. I just told you that it was possible for them to try that trick. There are many things you can do to put a stop to even such a threat by a judge. You just have to learn what to do if that should happen to you. If it is illegal to garnish a ss pension then what right does a judge have to circumvent that law? What gives a judge the legal right to act in such a high handed fashion? If that happened to me the first thing I would do is ask the judge whether or not that would be a civil contempt or a criminal contempt and who would be the judge that would preside over the hearing on the contempt charge. If they are going to hold a contempt hearing the judge who brings the charge can't be the presiding judge. Learn the law and how to use it to win.