Legal Question in Credit and Debt Law in North Carolina

Social Security benefits are exempt from garnishment/levy for most debts (assuming no tax or other debt owed to the federal government) or something like child support. However, there is a caveat - you cannot mingle the exempt funds with non-exempt funds. Nor can you mingle the funds with those belonging to another person.

I would make sure that if this is your debt that only Social Security funds are deposited into this special purpose account and that no one else's name is on the account. You can pay bills or withdraw the money, you just can't put in money from another source into the account.

I would also tell your creditor that the funds in this account are from Social Security and cannot be touched. I would also tell the bank manager by letter that this is a special purpose account and that the funds in it cannot be garnished.

Once the funds are seized, it is unlikely that you will ever get them back so it is easier to plan ahead and set things up properly so they will not be taken in the first place.