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Posted: Thu Aug 28, 2008 12:59 pm Subject: talked to bank

I called our bank (Regions Bank) and talked to the assistant manager to get some answers on the ACH/debit situation. I was told that if a transaction comes thru under our old, closed out account with them, then it should go back to the merchant as closed account, even if it is an electronic debit/ACH. As a side note, we had actually tried to go in to the bank last week to open it back up by making a deposit and their system would not allow it. That account was closed on 8/11/08, by the way.

I verified w/ the asst. manager that it would not do anything w/ the new accounts (checking and savings) we had set up with Regions a few days before we closed out the other account.

Posted: Thu Aug 28, 2008 1:06 pm Subject:

Pennyhm, glad to know that you worked something out about the house. As for your car, unless you pay the $1500 +, you probably won't get it back. I don't know how else to help you there.

As for the PDL's, IMHO, let them default and when in-house collections calls, set up a minimal repayment plan. Like $30 every month. Something that is do-able for you!! Not for the PDL company.

Make a budget of your expenses, house, car, food, gas, utilities, etc. Whatever is left over is what you have to pay on the PDL's. If there is nothing there, then there is nothing there. Sorry for the PDL's. Other than having additional income coming in, then you may just have to let the PDL's end up suing you. It's my understanding that social security benefits cannot be garnished. If I am wrong, someone here please correct me.

Posted: Thu Aug 28, 2008 1:11 pm Subject:

Of course I'm no lawyer, but bankruptcy doesn't always save a home, it sometimes more "stalls" it. But buying time might be worth it. I have filed bankruptcy before and did it because it's what I have to do.. so I'm not against it or anything. I'm just saying to look into all facts and get really solid legal advice before making decisions.
This is a horrible sitatuion and you are really in my thoughts - please feel free to come here for any advice, this board is really good at helping people.

Posted: Thu Aug 28, 2008 1:18 pm Subject:

Sounds like she was able to work something out with her mortgage company. Now she just has to work on her budget and figure out a repayment plan. It may be tough at first, if at all, but the answers will come to her.

My thoughts and prayers are with you.

Posted: Thu Aug 28, 2008 1:22 pm Subject:

bea2ls ... thank you for your thoughts and words. I don't think bankruptcy at this time is something we have to do just to save the house. We are working w/ our mortgage co. and they are working w/ us.

desp.sk.sanity .. thank you for your post as well. Thank you for the repayment tips .. I would not have had a clue. Hopefully Soc. Sec. can't be garnished. And, it has been tough for us since March.

As for a vehicle, we are hoping to get a vehicle w/ a lower monthly payment somewhere my mother in law recently got one from. I will be getting a check from my old job for profit-sharing and such that totals about $1500. We hope to use some of it for a down payment and get lower payments on another vehicle at a local car lot. Buy here pay here type car lot.

Our house payment is basically what we pay each month in pdl fees. SO, that should not be a problem now that we've decided it's best to NOT pay them.

Posted: Thu Aug 28, 2008 1:26 pm Subject:

See! Things are already looking up!! Smile

Hugs!

Posted: Thu Aug 28, 2008 1:28 pm Subject:

A little better ...

we were going to use the profit sharing check to catch up the house and the car but then what after that? we'd still have a $560/month (for car and insurance) bill that we probably couldn't pay if i could not find a job.

Posted: Thu Aug 28, 2008 1:42 pm Subject:

It is possible for the pdl's to take you to court, either as a civil suit, or on criminal bad check charges.

To avoid this, you need to kee up communication with the lenders. You will have to pay them off eventually, they won't just go away. As they are legal loans and legal lenders, they do have recourse to collect on the debt once you default. But it's better then losing your house.

Posted: Thu Aug 28, 2008 1:46 pm Subject:

Right Goudah! As long as she is communicating and paying on the loans, she should be okay. If they do decide to sue her, she can show the judge that she is making payments the best she can. Also, I think SSI cannot be garnished. (Not 100% sure.)

Posted: Thu Aug 28, 2008 1:50 pm Subject:

SSI can't be garnished in most cases, but their bank account or assets can be attached. Then you'd have to go through a process to prove the money in the account is SSi income. You wouldn't have access to that money during that time.

Seriously, the best advice you can take is to just keep up communication with all these places, payday loan companies, mortgage, etc. Be honest with them. Tell them the situation, what you can pay, and when, and be realistic. Stick to it, and don't ignore their calls and you should be fine.

Posted: Thu Aug 28, 2008 1:51 pm Subject:

Since she stated that she last worked in March, if she can get a job, ANY job thru the end of 2008, that will help her when she files her taxes in Jan/Feb. She should qualify for Earned Income Tax Credit, so she'll get a bigger refund. If she files the Feb 1st electronically, she can have her IRS refund in less than 2 weeks (direct deposit into her checking Wink

) and that should help in paying off some of her bills and PDL's.

Search the IRS dot GOV website about the Earned Income Credit. It will show the tax credit tables and you can figure out what it will be.

Now go get that job Smile

and know that Feb is right around the corner! Hugs again!!

Posted: Thu Aug 28, 2008 1:54 pm Subject:

If she does get sued, then she can show the judge her income, budget, etc. With proof that she has been paying the bills, what more can a judge do?

And if it does get to a lawsuit/court, can she request that SSI just send checks instead of direct deposit? That way they can protect the SSI income from being snatched.

The more I think about it, the more I say February Tax Time may be her saving grace here b/c if they try to sue her, it may take longer than that to get to court.

pennyhm again

Have read the recent posts and wanted to find out what steps we should take now w/ the PDL places. We are due to go in to the two different locations on Sept. 3rd. Should I call them beforehand and let them know we can't come in? Should I let them know the accounts have been closed? Should I go ahead and ask them for some sort of repayment plan or wait for them to sue us or ... ?? Or, should I let them present the checks/debits and then they are returned due to a closed account and then wait for them to call us?

Pennyhm (but didn't set up password and site will not log me in or email me new password)

pennyhm2 · Posted: Thu Aug 28, 2008 4:36 pm Subject:

Hubby and the kids are getting social security disability, not SSI. That is supplemental security income. If it matters....

socialsecurity · Posted: Thu Aug 28, 2008 4:41 pm Subject: found this online

Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions:

Section 459 of the Act (42 U.S.C. 659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations;

Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows benefits to be levied to collect unpaid Federal taxes;

Section 3402 (P) of the Internal Revenue Code allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year;

The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and

The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid.

The Social Security Administration's responsibility for protecting benefits against legal process and assignment usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of the Act as long as they are identifiable as Social Security benefits using normal banking practices. For example, only social security benefits are deposited into a particular bank account.

If a creditor tries to garnish your social security check, inform them that unless one of the five exceptions apply, your benefits can not be garnished. You also may want to provide this same information to your financial institution and seek legal assistance if you believe it is needed.

pennyhmAgain · Posted: Thu Aug 28, 2008 6:52 pm Subject: wait or forewarn pdls?

good to know about soc. sec. just wanted to find out what to do about the pdl locations...wait on them or go ahead and forewarn them.

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