bank seizure strategies

I think someone at her bank doesn't know what they are talking about. Section 207 of the Social Security Act says:

"The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law."

If I were her, I would put that in writing, then send it "certified, return receipt requested" to the bank manager, and probably a copy to the president of the bank (if it is a large, multi-office bank). I would probably call Social Security and get a copy of the law from them and include it with the letters too.

I don't know what city she is in, but my guess is that there is also some sort of legal aid available to her, especially since she is elderly. I would talk with them too. They might have a lawyer who would be willing to write a letter with the same info.

The problem is likely that the people in the local bank don't know the law. I would make it clear that I would be willing to make a big stink about it if they decide to disregard the law. Even if they don't know what the law is, it is not a defense on the bank's part. Ignorance of a law is never a legitimate defense.

I would also talk to the branch manager, and give them a copy of the letter, and make sure that they note her accounts that they are exempt free due to disability payments.

Definitely look into getting her some legal help. There are a lot of companies that can do pro bono or reduced rates, especially for the elderly.