Legal Question in Credit and Debt Law in New Jersey

In order to do anything to collect, they must first sue your mother and obtain a judgment against her. She will know that she is being sued because she will receive a Summons and Complaint (assuming they are aware of her mailing address). They will obtain a judgment if your mother ignores the lawsuit or loses the lawsuit. Once they obtain a judgment, they can try to collect. They cannot interfere with the receipt of social security. In addition, if it is deposited into a bank account, it is immune from a bank levy. However, if it is deposited into a bank account, they may not be aware that the source of the funds is social security. Therefore, there may be a bank levy which would result in funds being taken from the account. Then your mother must act immediately to bring to the court's attention that the source was social security (the bank statement should clearly show the electronic deposits to make this easy to demonstrate). Then the funds will be released back. This could take a few weeks to get the money back. So while social security is immune from levy, it could still cause a headache since it does not mean that a bank levy won't be attempted. If your mother gets a judgment against her, it would be wise to immediately inform the judgment holder IN WRITING by certified mail (keep a copy) that the sole source of income is social security. This would hopefully decrease the chances of a bank levy and the headache to undo it after the fact. If your mother needs assistance with this matter in the future, feel free to call.