Freezing checking account

Discussion in 'Credit Talk' started by peeper, Aug 16, 2006.

  1. peeper

    peeper Well-Known Member

    Can the powers that be freeze a checking account with both the husbands and wifes name on it if only the husbands income is direct deposited and that income is from social security and va disability and only the husband has a judgement against him? Thanks
     
  2. owe2much

    owe2much Well-Known Member

    Partial answer:

    VA disability is exempt except from US Goverment debt.
    Under chapter 38 United States Code of Federal Regulations (38 CFR)
    (available at all Libraries and online)

    A Veterans Service Officer with the DAV, VFW, or other organization can help.
    Also call the VA at 1-800-827-1000.

    If they seized a VA direct deposit check, they are in violation of federal law, and the VA takes it seriously. You should be able to get it back quickly.
     
  3. missymo2

    missymo2 Active Member

    Yes, they can freeze that account. VA checks, etc are exempt from garnishment. The powers that be that freeze the accounts don't know/care where the money comes from originally.
     
  4. owe2much

    owe2much Well-Known Member

    Yes free from garnishment, but also seizure, and levy.
    The law is very clear about this.


    If the bank allows it they are contirbuting to a violation of federal law.

    Call the VA 1-800-827-1000 and tell a VA counseler who and how it was seized. Tell them you need assistance from a benefits specialist. It is causing undue hardships.

    You will have your money returned, and they are probably liable for damages.

    Here is a Supreme Court case that defines the VA and Congress position on the subject, it clearly list the applicable laws stating the exemption:
    http://www.usdoj.gov/osg/briefs/1986/sg860452.txt
     
  5. peeper

    peeper Well-Known Member

    What about social security disability?Do you have any info regarding seizure of this income?Can a judgement freeze the checking account if the only income direct deposited is from social security disability?
     

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