Creditors and Social Security Disability Accounts

by Linda
(Leominster)

I signed for a car for my daughter over a year ago. The car was in my name. The car was totaled in an accident which was not her fault. Now the credit union is telling me that they got money when they auctioned the car and money for the damages for the car. They now want me to pay them over $7,000 in two weeks for the remainder of the loan.

I live on a small disability income from Social Security. Can you please tell me what to do to stop them from taking my money out of my direct deposit account that I have in another credit union.

I can barely pay my rent and bills now, if they take out any money I will lose my apartment and have no where to go. I need all of the money just to live. Please, can you help me?

Reply from DebtCollectionAnswers.com:

Linda, we are sorry to hear of the difficult situation you are in.

Social Security disability income is usually safe from creditors. You DON'T keep funds with the credit union that has the debt, correct? If so, you need to open an account elsewhere.

Based on what you are telling us, you are probably
judgment proof, and if you tell the credit union that, they will likely stop wasting their time trying to collect from you.

We recommend you get a a free consultation with a bankruptcy attorney to confirm if you are judgment proof. If you are, you can see whether the attorney will write a letter on your behalf to the credit union explaining the situation, or you can do so yourself.

Of course this doesn't stop the credit union from trying to collect from your daughter, if she is on the loan too. She may need to talk with a bankruptcy attorney herself if she can't pay this debt.