Expert: Regan Shinski - 9/21/2009

Question
QUESTION: hey Regan!!just wanted to follow up on the question i ask you about wachovia.you were right,they went into my acct and saw where i had deposited some money from my son.now i know what you mean by "do not mix monies"!!!!!!!!they said since that 240.00 i deposited was mixed money and not social security disability they could not refund my money for the prime equity they had taken out for collections.remember i told you they had taken out 133.00 from my acct because i was 30 days past due?welll,that is a life lesson.for all you on social security disability do like Regan says do not mix your monies or they can get it!!!you told me to tell you what happened.and i called them back today.good news is my prime equity is not longer past due.bad news is i have no money left for food and they will not put the overdraft back in.thank you thank you for your help and i know now that you can never mix moneys keep your social security disability in your checking acct only do not add cash or a check that someone has given you cause that opens up a new "can of worms"right.
thank you Regan from the bottom of my heart,you are the best!!you taught me a life lesson that i will keep in my head so i do not mess up again.
thank you for your kindness!!

ANSWER: Hi Susan:

Yes, I hope others with any type of social security, SSI, disability or similar income read your post and don't make the same honest mistake.

In your case, I would verify that the account is back to "social security" only status.  What I mean is, say 4 months from now the same thing happens.  Will they take the money again because they say "your son deposited non-SSI money 4 months ago.  How do we know the current balance still doesn't include some of that money."  See what I'm saying?  What if it happens 2 months from now?  Two weeks?  Is the account "tainted" now for good?  I think if you make several months of ONLY SSI deposits, you should be okay but they already kind of messed you over once on a technicality so I don't think you can be too careful.  If you are worried or they can't guarantee anything, does it cost you anything to get a different/new account number?

Good luck!  I hope and pray for the best for you.
Regan
813-454-1459





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

QUESTION: okay i know i am driving you crazy but legal hotline for seniors has been helping me with this but now i am not sure what they told me is what i should do.i had a loan with wells fargo before i become disabled and they went to court to file lawsuit against me.the wanted me to give an answer gwinnett senior services told me i did not have to file and answer then they told me i did not have to go to court.that they would default anyway.social security disability is exempt.now i have just gotten a letter from state of ga.they have a default judgement with the principal of 1647.94 prejudgement interest ing the amt of 304.90and court costs of 103.00 now it is saying post judgement interest on the principal amount from the date of this order at the lawful rate.will this nightmare ever end.gwinnet legal services told me i did not have file and answer they told me i did not have to go to court.that they would just put a lien on my house since social security is exempt.now i am scared to death what in the heck are they going to do to me now.all i have is this social security disabilty and no way of paying 2055.84 dollars what in the heck will i do?if this interst accumulates what am i looking at.i am really scared now.did they give me bad information did i dig my own grave???

Answer
Hi Susan:

Social security income is exempt from being garnished or collected, even if there is a judgement in place.  The exceptions are the ones we discussed before - scroll down to that last question again in this link for details:

http://www.ssa.gov/deposit/DDFAQ898.htm

I'm not going to second-guess advice given by others.  In general, I would have fought the collection more up front, but that's my style.  The worst thing that could have happened (if you fought it# would be that you are exactly where you are now.  However, your advisor may have had reasons to tell you what they did based on the circumstances at the time.

Now, they have no way of taking your social security if you handle it through the banking procedures we discussed about before.  Make SURE your new bank knows the account is for social security benefits only.  Make them put a note on the account.  In the remote chance Wells Fargo tries to attack the account, you should be safe.

Again, they have no legal way to take you SS if you handle it properly.  They cannot sell your house or kick you out.  They can file a lien on real estate.  When/if you go to sell, that will have to be paid before you can get money out.  Same thing if you try and refinance any mortgage.

In extreme cases they can try and take large personal property items.  It's rare and I'm guessing you don't have five expensive cars or boats in your driveway for them to take.  So I think you are safe there too.

If something awful happens to you resulting in your death, your ESTATE would be responsible for all the bills - including this judgement - NOT your family or friends.  Your estate would add up all your assets #cash, savings, real estate, etc.), pay creditors, and if anything remains that goes to your heirs.

In general, the judgement will not go away until paid but your current day-to-day lifestyle should not change or be in danger because of it.

Regan
mbscompany@aim.com
813-454-1459