Legal Question in Credit and Debt Law in California

Well, even if she or you could appear in court, there is no defense to the lawsuit because she simply has failed to pay her credit card bills. Eventually, sooner or later, Citibank will get a judgment against her, unless a deal could be worked out to settle the debt or pay a smaller monthly amount. But in any event, even if they get judgment against your grandma, in California, a bank account that contains direct deposited social security payments in her name is exempt from levying for up to $2,425. See Code of Civil Procedure (CCP) section 704.080(b)(2). If you're spending all of this each month for her retirement home then the account is not growing. Even what?s in the account more than the amount above is exempt if it consists of social security benefits. See CCP sec. 704.080(c). So, it appears your grandma's social security benefits are probably safe from collection if they're directly deposited in an account. These are the exemptions she?s entitled to even without making a claim. Even if they do try to levy on the excess amount in the account, the judgment debtor (her) will have a chance at a hearing to prove that it is exempt because it is necessary for the support of the judgment debtor.