Florida Judgment

I have $120,000 in credit card debt. My income is from Social Security and a state retirement plan. Should I worry about judgments?

Read full question
Bill's Answer: Bills.com Resident Expert

Excluding child support, creditors cannot touch Social Security and pension benefits if they are deposited into an account that is not intermingled with funds from other sources.

Create a separate, new bank or credit union account that contains no funds. Ask the bank or credit union to add a notation that reads something like, “Funds sourced from Social Security and pension only. Do not garnish.” Different financial institutions may have different notations that mean the same thing. If the teller seems confused by your request, ask to speak to the branch manager.

Your other accounts are fair game for attachment/levy/account garnishment. Those three terms mean the same thing — open to seizure if the judgment-creditor gets an order to do so. Resist the urge to dump all of your funds into the Social Security and pension account. Tainting that account with non-pension and Social Security money opens it up to levy.

If the judgment creditors cannot get a wage garnishment because you have no wages, place a lien on your home because that is not allowed in Florida, or levy your pension and Social Security account, then the judgment creditors have exhausted all means to collect from you. The judgments will remain on file for the statutory time allowed, and then expire.

See the Bills.com resource Florida Collection Laws to learn more about the specific laws in your state. Consult with a Florida attorney to learn more about your rights and liabilities.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

Comments (2)


Fred T.
Trinity, FL  |  January 28, 2012
I also have income solely from pensions and SS and IRA's. I am now required to take RMD payments from my IRA plans. Currently they are deposited in a checking account. Can I have them deposited in a growth fund of some sort and still be protected from garnishment? I have an active judgment against me.
Bills.com
January 29, 2012
Once you move your funds out of your IRA account, they may be subject to a bank levy. I recommend that you speak with a lawyer who can give you advice regarding the best way to protect your assets.
Waiting for comments to load Loading more comments
Thanks for your feedback!
 
Thank you for subscribing!