A collector can’t garnish anything without a court judgment. Collectors obtain a court judgment by filing a lawsuit, serving a summons and complaint, and eventually obtaining a judgment. Seniors and disabled persons normally have nothing to worry about if faced with a judgment for old debt. Collectors cannot garnish federally protected income like Social Security, pensions, VA and disability benefits. Federal banking rules also automatically protect from garnishment twice the amount of monthly Social Security deposited into a bank account, no matter the source of funds in the account at the time of the garnishment. However, sometimes persons may have extra money that is not from a protected source, such as proceeds from the sale of some asset like a home or car. If that unprotected money is held in a bank account, it could be subject to garnishment. How then can that money be protected?
Sometimes a prepaid Visa card is suggested as a means to protect money from being garnished. A prepaid Visa card looks like a credit card but is entirely different. It’s not supported by credit issued by a bank; instead, it’s paid for with cash. A prepaid card allows you to make purchases using your own money rather than borrowing money from a creditor and paying interest and fees for the privilege. It’s just like paying with cash.
A prepaid card is also as different from a debit card as it is from a credit card. When you make a purchase with a regular debit card, your bank immediately deducts the cost of the purchase from the bank account the debit card is connected to. But with a prepaid debit card, you load money onto the prepaid card until it is used up, and then add more. A prepaid debit card is like a renewable gift card. The money on a prepaid debit card is not held in a bank account with your name.
Here are two links with Walgreen’s and Walmart that show how to get a prepaid debit card and explains in detail how they work:
Judgment creditors would love to be able to garnish a Visa prepaid card – but they can’t. They would first have to find out about its existence. A prepaid card does not show up on your credit report and collectors have no way of knowing if you have one. The only way they’re going to find out about your prepaid debit card is if you tell them yourself, which you would never do. Putting excess money that’s above the protected limit in a bank account into a prepaid card is like taking cash out of your account. A creditor won’t be able to locate and garnish it.
Prepaid debit cards are a relatively new concept. There are simply no procedures in place for judgment creditors to access information in order to garnish those types of accounts.
We are classified as as a charity by the IRS. Around one third of our clients receive our services for free. Our suggested fees are based on our client's ability to pay. We are largely supported by our client's small monthly payments.
Law firms in the U.S., on average, generate substantial revenue each year, but the numbers can vary significantly. For instance, large corporate law firms often report revenues in the millions, with some even reaching upwards of $10 million annually, due to their extensive client base and wide range of services.
Option Two: File a Chapter 7 bankruptcy. The “upside” of proceeding in this fashion is that your Chapter 7 Trustee will not be able to reach your assets either, and the stress associated with harassing phone calls and other collection activities will stop immediately upon the filing of your bankruptcy petition.
Potential donors should ask the fundraiser for the charity's exact name, website and mailing address so they can independently confirm the information. Use TEOS to verify if an organization is a legitimate tax-exempt charity. Don't give in to pressure. Scammers often pressure people into making an immediate payment.
There are resources that will allow you to check if a charitable organization is legitimate. Visit the California Registry of Charitable Trusts website (http://oag.ca.gov/charities), call (916) 445-2021 or send inquiries to P.O. Box 903447, Sacramento, CA 94203-4470.
If you owe money, the lender will sometimes hire a debt collection agency to try and get you to pay. So, some debt collectors are real, and they're acting on behalf of the company to whom you owe money.
Greater Good Charities is a global nonprofit organization that works to amplify the good in the world. Greater Good Charities works to help people, pets, and the planet by mobilizing in response to need and amplifying the good.
Introduction: My name is Kimberely Baumbach CPA, I am a gorgeous, bright, charming, encouraging, zealous, lively, good person who loves writing and wants to share my knowledge and understanding with you.
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