Insurance Fine

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ajw1966

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Hi, my step son was caught without auto insurance in 2007. The fines were approx 2600.00. Payments were made up to a remainder of 540.00. He then filed bankruptcy in 2008, then 2010 diagnosed schizophrenic and is now on SSI disability and is his sole income. Maryland state is coming after him for the remainder balance of 540.00. MD is threatening court action for this balance. Can they garnish his SSI? Do they have a case since he has nothing but an SSI?
Thank you,
Al
 
Just a question....

Are you sure he is on SSI? Or is he on SSDI They are different....



For non-governmental creditors to attempt to levy or garnish an SSI or SSDI recipient's bank account, the creditor must obtain a court judgment. Accordingly, an SSI recipient has the opportunity to contest the garnishment through the court process. Debtors should file a legal response to garnishment at the earliest opportunity in order to avoid complications later.


Exempt Funds

Section 207 of the Social Security Act (42 U.S.C. 407) prohibits non-governmental creditors from garnishing or attempting to levy on an SSI recipient's income or a bank account with SSI income on deposit. Governmental agencies may only garnish bank accounts or withhold SSI benefits if one of the specific exceptions apply.

Exceptions

Creditors are allowed to garnish bank accounts of an SSI recipient only to the extent that non-SSI funds are deposited in the bank account. Government agencies are allowed to garnish SSI income to pay outstanding child or spousal support obligations, unpaid federal taxes and non-tax obligations owed to a federal agency, or when a recipient has consented to withholding for tax obligations for the current year. The IRS can garnish or withhold a recipient's income only up to 15 percent of each monthly payment owed to the recipient.
 
Thank you for the speedy reply.
It is SSDI. Diagnosed in 2010 with mental disability. So can Maryland State garnish his SSDI for the remainder balance?
Technically the Maryland Central Collection Unit submitted the collection of the balance to the Income Tax Division according to the letter.



Just a question....

Are you sure he is on SSI? Or is he on SSDI They are different....



For non-governmental creditors to attempt to levy or garnish an SSI or SSDI recipient's bank account, the creditor must obtain a court judgment. Accordingly, an SSI recipient has the opportunity to contest the garnishment through the court process. Debtors should file a legal response to garnishment at the earliest opportunity in order to avoid complications later.


Exempt Funds

Section 207 of the Social Security Act (42 U.S.C. 407) prohibits non-governmental creditors from garnishing or attempting to levy on an SSI recipient's income or a bank account with SSI income on deposit. Governmental agencies may only garnish bank accounts or withhold SSI benefits if one of the specific exceptions apply.

Exceptions

Creditors are allowed to garnish bank accounts of an SSI recipient only to the extent that non-SSI funds are deposited in the bank account. Government agencies are allowed to garnish SSI income to pay outstanding child or spousal support obligations, unpaid federal taxes and non-tax obligations owed to a federal agency, or when a recipient has consented to withholding for tax obligations for the current year. The IRS can garnish or withhold a recipient's income only up to 15 percent of each monthly payment owed to the recipient.
 
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Whether or not they file a garnishment, he is going to be responsible for the $540. It doesn't get waived because he went on SSDI.
 
This doesn't answer the question of whether his SSDI will be garnished or not. I'm not asking about waivers. He is mentally disabled, has only SSDI income and cannot comprehend his responsibility to pay the 540.00. The caregivers manage his SSDI funds for rent and utilities.
We need to know if the state can or cannot take the funds from his SSDI.

Please reply only if you have legal advice.
 
They can if the court tells them they can. No one here can predict if the court will or not. If he owes the $540, I'm not sure why it matters if it gets processed as a garnishment or not though.
 
It matters greatly if it's processed as a garnishment or not because the SSDI is all he has for money and it's not a lot! If Maryland CANNOT take it....then it's 540.00 that can stay in his pocket. If Maryland CAN take it, then we need to figure out how to gather up the funds to pay it before it goes to court.
"ElleMD"...you replies to my question(s) are basically blanket statements and have been zero help in any way, shape or form.
Ok, i'm done here on this forum. I thought this was "TheLaw.com" LEGAL ADVICE forum.
 
You've been given the legal answer, you just don't like it. There is no way out of the $540. A garnishment just means it is processed for him. Only a court can order that. If you want us to predict the future and tell you what unknown judge might decide at a future date, we can not.
 
It matters greatly if it's processed as a garnishment or not because the SSDI is all he has for money and it's not a lot! If Maryland CANNOT take it....then it's 540.00 that can stay in his pocket. If Maryland CAN take it, then we need to figure out how to gather up the funds to pay it before it goes to court.
"ElleMD"...you replies to my question(s) are basically blanket statements and have been zero help in any way, shape or form.
Ok, i'm done here on this forum. I thought this was "TheLaw.com" LEGAL ADVICE forum.

If a governmental agency were to seek an attachment or levy against a bank account, the victim would receive notice. That allows the victim time to assert any valid defenses.

In most cases, only a certain portion of one's assets or income can be attached. The victim or target is afforded some percentage of his or her income to eat, pay rent, buy medicine, etc...

The best way to find what that protected percentage is, is to contact the funding source. In your relative's case, that's social security.

Lastly, the alert letter that precedes the attachment action lets you know the standard percentage you can protect in most cases.
 
Thank you army judge, this is helpful.

If a governmental agency were to seek an attachment or levy against a bank account, the victim would receive notice. That allows the victim time to assert any valid defenses.

In most cases, only a certain portion of one's assets or income can be attached. The victim or target is afforded some percentage of his or her income to eat, pay rent, buy medicine, etc...

The best way to find what that protected percentage is, is to contact the funding source. In your relative's case, that's social security.

Lastly, the alert letter that precedes the attachment action lets you know the standard percentage you can protect in most cases.
 
Thank you army judge, this is helpful.

You're welcome AJW.
I know the IRS can levy against SS beneficiaries.
But, they are only allowed to take 15% of the person's benefits.
If that's true for The State of MD (I can't see why the IRS would get less than another government agency), your son would have about 85% left each month until the $540 is paid.
But, you generally have to assert that defense, because the BREEDY GASTARDS will steal it all.
So, let Social Security know, and the bank as soon as the attachment notice appears.

Lastly, the BK might have eliminated the $540.
You might ask his lawyer about that.
Sometimes sending a copy of the BK discharge will get the thieves to slither away.
BK discharges ALL debts, in most cases, even if the creditor might have not been mentioned specifically.
His BK lawyer can best describe this for you.

Good luck.
 
Great info! I'll look into this.

You're welcome AJW.
I know the IRS can levy against SS beneficiaries.
But, they are only allowed to take 15% of the person's benefits.
If that's true for The State of MD (I can't see why the IRS would get less than another government agency), your son would have about 85% left each month until the $540 is paid.
But, you generally have to assert that defense, because the BREEDY GASTARDS will steal it all.
So, let Social Security know, and the bank as soon as the attachment notice appears.

Lastly, the BK might have eliminated the $540.
You might ask his lawyer about that.
Sometimes sending a copy of the BK discharge will get the thieves to slither away.
BK discharges ALL debts, in most cases, even if the creditor might have not been mentioned specifically.
His BK lawyer can best describe this for you.

Good luck.
 
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