My dad answered a call from a CA the other day. The CA lady hit the jackpot. She ended up gettting my dad to agree to the CA taking $1,000. (in 10 days) from his banking account. She said she would wait until my dad's SS check was direct deposited into the account. They have not taken the money out yet. They got him to agree to paying the WHOLE amount plus all they add on. $13,000. They are going to take $100. per month. My dad is 71. Can they take from his account and it is his SS money? Was this a legal agreement?? What should my dad do next? The CA lady said she would stop a summons that was about to be delivered to him. What would happen if my dad went to court?? Would the judge make him take money from his SS and/or pension and give it to the CA?? Please help before they take the money from his account.
http://caselaw.lp.findlaw.com/scripts/ts_search.pl?title=42&sec=407 Section 407. Assignment of benefits (a) In general The right of any person to any future payment under this subchapter shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law.
It looks like your dad could allow them to take money from his account, but if his only income is from social security and he has no other assets, they might not be able to do anything if he decided not to pay them from his social security benefits, agreement or not. You might have him call Social Security.
If he agrees to allow the withdrawal then it will be done. IF the CA sues him, and gets a judgment, his assets from SS will be exempt from seizure, but that is only after a judgment is issued.
There was a recent Supreme Court decision (in the last few days) that IRA accounts were not accessible to creditors in bankruptcy.
Tell him not to let them take the money out of that account because they will take all they want to. Use a new account if you want to pay. SS is protected, but once it's in his account it's fair game. In other words, they can't go to SS and touch his money , but once it's in his account it's no longer belongs to SS. Even if they get a judgement your father just has to show he can't afford to pay. Courts are gonna have simpathy for a 71 year old. Worst case he makes a payment arrangement.
Have dad go to the bank and put a STOP payment on this debtit. Then have him open an account ata different bank and redirect his Social Security and Pension to the nwe bank - then close the old account. Reason: While they cannot attach either the Social Security or the Pension, once it hbits the bank it is fair game. By giving them the location of his account, he gave them the information they need to sue, get a judgment and then take his entire account balance. They know to serve the attachment papers on the 3rd of the month when Social Security hits. It's time for dad to start protecting himself.
