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Creditors and Bankruptcy/SSI and credit card collection
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Question
I am on SSI and disabled 62 yr.old. I have credit cards that I am no longer able to pay. With the downward turn in the economy and upward swing of cost of living I have found it to be virtually impossible to keep up. My concern is the SSI benefit I get is the only income that I have and I worry that creditors who I have paid in the past online with my checking acct. and over the phone that they now have my bank acct numbers. Is it possible they can just take the money from my acct? I don't own a house or a car and have nothing of value. Should I worry that they can take my money? I wonder if making token small payments is helpful or if I should just not pay when I can't.? As you can see I'm confused as to the right way to handle this. I have tried to get on hardship programs with a few of my creditors but most will not oblige. Help any information appreciated.
Although it would be illegal for them to just take money from your account without authorization it has not stopped many creditors from actually doing just that. Most banks adhere to the law but there are unscrupulous bill collectors who are dishonest and unethical. The bottom line is you cannot trust a bill collector.
I suggest you close the account and reopen another. Keep your routing and account numbers private and if you do pay the bills do so on line or by money order. Never make a payment by phone or direct debit. When you pay on line the creditors do not have access to the account numbers. It is an automatic debit so you are safe. Checks by phone or ACH is different. They can retain that info for future use. Better safe than sorry.
SSI benefits are exempt from attachment. The only thing I should caution you on is if they obtain judgment they may attempt to attach the account unless you file for an exemption of the account which may be a form you file through the courts.
It is difficult to say whether they would accept you payments if they are less than the minimum so you may attempt to pay as you are able. Otherwise, write them a letter informing them of your hardship and that you will send money when you can.
Relax you are untouchable.
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| Comment | Thank You for the information. it is a relief. i have written letters to my creditors tha I am unable to work out a program with and explained in detail my situation as far as SSI and no other income and stated I would pay as I can. I think opening a new bank account would be wise. Thank You. | ||
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. We are well versed in Loss Mitigation practices and the legal collection process. We have helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. We actively promote Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
28 years in financial services industry as a loan officer and debt collctor. Developed bankruptcy and loss prevention manual for large finance company for manager training. 15 years as a debt counselor and consumer advocate.
Education/Credentials
Veterans sponsored OJT Manager Candidate Scool for AVCO Financial Services, Keystones to Management for ITT Financial Services, Certified Finance Management for Associates Financial Services.
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