If all, or part, of your income is from Social Security, or Social Security Disability, you need to take action to protect this money. You have probably heard that Social Security monies are exempt. This means that a creditor can’t take it from you by a bank garnishment, and, if you file bankruptcy, it means that you can keep all of it – even if you have $5,000 or more in your Social Security account. However, there are steps you need to take to receive this protection.
Here is the key: You must keep your Social Security monies in a segregated, separate bank account. Do not mix up any other money with your Social Security income. This is called “commingling funds” and it removes the “exemption”, or protection, for this money.
The Steffens Law Office wants to help you exempt and protect your Social Security monies from creditor garnishment, and from the Bankruptcy Court, but we need your help in doing so. If you and your family have income from a source other than Social Security, be certain to keep that money out of the Social Security account.
So, do not deposit one penny into your Social Security account unless you can document that the money deposited comes from Social Security. In other words, do not deposit a traditional paycheck, or cash from another source, into this account. As long as you can prove that all money in your Social Security account is from Social Security, or Social Security Disability, you get to keep it when filing bankruptcy, or if a creditor tries to garnish it.
If you have other questions about how to protect your Social Security monies and manage your Social Security bank account, please contact the lawyers at the Steffens Law Office. We have over 30 years combined experience in the field of debtor/creditor law, and we can help protect your money.
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