Legal Question in Credit and Debt Law in California
freezing and taking assets from bank acct.
I have a bipolar friend on SSI - her
only income. Recently her bank acct
was frozen and all her money (less
than $400 I believe - as she gets
about $600 a month) was taken
from her acct. to pay on an
outstanding debt for a laptop she
charged many years ago from Circuit
City, which is now bankrupt. I didn't
think debtors could take federal/state
benefit payments for debt service for
these low income, mentally disabled
people. She now has bounced cks,
and overdrafts for over $300 and
fees. The bank (Cr. Union) told her
to get a form from the Social Sec.
ofc. that confirms the $ should not
have been removed so they can get
the funds back for her. When she
went to get a form, she was told
there wasn't such a form. (1)Can
they take her funds? (2) Can she get
the money back? (3)Who can help?
She has elderly parents who are at a
loss at how to help. They and she
are intimidated by the whole thing.
2 Answers from Attorneys
Re: freezing and taking assets from bank acct.
She will have to file a motion with the court for an exemption. She might call on Legal Aid or some other pro bono group to assist her with the paperwork.
Re: freezing and taking assets from bank acct.
I partially agree and partially disagree with attorney Cohen. In order to tap her bank account they had to go to court and get a judgment. If she never heard about the court case she can file to have it set aside. Exactly how many years ago was the debt incurred? If more than 4 years between the debt and the court judgment, or if the court that rendered the judgment was in a faraway city such as Richmond, VA, she may have been a victim of unfair debt collection practices and she may have a good lawsuit against the collection agency.
Even if the judgment was valid they should not have been able to take her SSI money; she needs to file a Claim of Exemption with the court after consulting with an attorney who is experienced in consumer debt issues.
I would like to hear more details, preferably directly from her.
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