My daughter is paralyzed from a terrible car accident three years ago. We mailed a letter to all of her creditors notifying them of her inability to pay past due debts. Only one creditor filed a lawsuit and obtained a default judgment. They froze the bank account my daughter receives her Social Security Disability Benefit direct deposit. I understand that those funds are exempt from judgments. Does anyone know how I can unfreeze her bank account and protect that account from future freeze activity? Her only income is SSDI.
Hi, go to the Court where the Judgment was filed and they will release the bank account. Take proof of your daughter's income and her identifying documents.
You will have to show also that THAT account is majorily comprised of the SS funds as well. If the SS funds are the minority source of the funds, you may have an uphill battle, because the court has to figure out which funds may be exempt and which ones might not be exempt.
BTW: nothing can prevent future attempts to freeze. You just have to keep going through the process to unfreeze, if they try again.