Question xfer US SS Direct Deposit from US to BDO

[Arizona Kid]

5 hours ago, roddavis said:

If you bank account is in California, CA get  pretty aggressive.

I had a tax problem before I retired here. My fault because after I retired from the military I didn't have enough taxes taken out of my retirement check. I was with SDFCU. San Diego Federal Credit Union. When it came time to pay back what I owed, the Feds agreed to let me make monthly payments. CA. wouldn't even negotiate. They took it all in one swoop!, with no warning. I was left with a zero bank balance. Got through it though with some money I borrowed from my Mom that I paid back.

[RubberChicken]

The maximum protected (exempt)  in a U.S Social Security Account is $2500. Further if funds are commingled that leaves a degree of standing with the creditor to attempt to seize assets, even below $2500. Commingled would be defined as other funds going into the account containing the SSA direct deposits. An account that is managed by an adult but in the name of a child is fully exempt. Best not to cloud the waters by commingling funds there either.  

My very sincere recommendation is to open accounts solely for SSA deposits. One account for each beneficiary. Then transfer any needed funds to a completely unrelated account. You can withdraw SS funds just don’t add any non-SSA funds to an account getting SSA deposits.

A creditor can not do a blanket search of every bank looking for assets. This is a fallacy. They will try to get lucky with serving papers individually to dominant banks in your area. If you pick obscure banks it will help you. Other ways they will find money:

Linked accounts used to pay your bills to them before things went bad.

If a new bank does a hard credit pull as a condition of account opening. They can see this. This will disappear in two years from when they ran the credit check- then it will not be visible. 

Chexsystems. Sometimes used to check your credit when you start an account. They can see this and it lasts for years. Five years plus?

Certainly other ways but the more expensive it is for them the faster they will quit.

The creditor can ignore your lawful exemptions (SSA) to force you to affirmatively assert your protected status. IE: Sue you and make you defend the suit. You will have a winner but only if you defend it or a Judge tosses it.

Also, you want to assert you are judgement proof (if you are) because this is the ultimate buzz kill for a creditor. Not only will they spend a fortune to proceed against you but even if they win they get nothing. That is a killer for them. They may still pursue you but it will really mess with their enthusiasm because it is an expensive stone cold road to oblivion for them. If they believe you are judgement proof they will be gone.

Since hardly nobody they pursue  knows as much as you now do, you will possibly very quickly not be worth chasing!

Lastly remember that I am a complete stranger and take nothing I say as absolute fact. Take it as data points to verify as accurate or not. My motivation to post this  is favoring the “little guy”.  

[JJReyes]

14 hours ago, Arizona Kid said:

I had a tax problem before I retired here. My fault because after I retired from the military I didn't have enough taxes taken out of my retirement check. I was with SDFCU. San Diego Federal Credit Union. When it came time to pay back what I owed, the Feds agreed to let me make monthly payments. CA. wouldn't even negotiate. They took it all in one swoop!, with no warning. I was left with a zero bank balance. Got through it though with some money I borrowed from my Mom that I paid back.

Thousands of military personnel register as South Dakota residents because there is no state income tax.  You can be assigned anywhere including California.  It is your place of residence that counts.  Met today a recently retired police officer from California.  He is on his way to Rapid City to register as a resident (you need to stay at a hotel, motel or campsite for one night) and open a PO Box account.  Next, he plans to stay another 30 days to qualify for a "Concealed Weapon Carry" permit.  There is a reciprocal agreement with other states having a similar law.   One additional requirement is the retired police officer cannot stay more than 180 days in California during a calendar.  I do the same because California claims I owe them money.  We maintain a daily log as to where we are physically during a calendar.  The tax authority in California can demand to see the log book for a period of 8 years.  So far, I have completed 5 years.

[Arizona Kid]

8 hours ago, JJReyes said:

Thousands of military personnel register as South Dakota residents because there is no state income tax.  You can be assigned anywhere including California.  It is your place of residence that counts.  Met today a recently retired police officer from California.  He is on his way to Rapid City to register as a resident (you need to stay at a hotel, motel or campsite for one night) and open a PO Box account.  Next, he plans to stay another 30 days to qualify for a "Concealed Weapon Carry" permit.  There is a reciprocal agreement with other states having a similar law.   One additional requirement is the retired police officer cannot stay more than 180 days in California during a calendar.  I do the same because California claims I owe them money.  We maintain a daily log as to where we are physically during a calendar.  The tax authority in California can demand to see the log book for a period of 8 years.  So far, I have completed 5 years.

Best to keep store receipts to back up those daily logs. You probably already know that.

[ITGeek]

On 4/9/2019 at 7:30 AM, RubberChicken said:

The maximum protected (exempt)  in a U.S Social Security Account is $2500. Further if funds are commingled that leaves a degree of standing with the creditor to attempt to seize assets, even below $2500. Commingled would be defined as other funds going into the account containing the SSA direct deposits. An account that is managed by an adult but in the name of a child is fully exempt. Best not to cloud the waters by commingling funds there either.  

My very sincere recommendation is to open accounts solely for SSA deposits. One account for each beneficiary. Then transfer any needed funds to a completely unrelated account. You can withdraw SS funds just don’t add any non-SSA funds to an account getting SSA deposits.

A creditor can not do a blanket search of every bank looking for assets. This is a fallacy. They will try to get lucky with serving papers individually to dominant banks in your area. If you pick obscure banks it will help you. Other ways they will find money:

Linked accounts used to pay your bills to them before things went bad.

If a new bank does a hard credit pull as a condition of account opening. They can see this. This will disappear in two years from when they ran the credit check- then it will not be visible. 

Chexsystems. Sometimes used to check your credit when you start an account. They can see this and it lasts for years. Five years plus?

Certainly other ways but the more expensive it is for them the faster they will quit.

The creditor can ignore your lawful exemptions (SSA) to force you to affirmatively assert your protected status. IE: Sue you and make you defend the suit. You will have a winner but only if you defend it or a Judge tosses it.

Also, you want to assert you are judgement proof (if you are) because this is the ultimate buzz kill for a creditor. Not only will they spend a fortune to proceed against you but even if they win they get nothing. That is a killer for them. They may still pursue you but it will really mess with their enthusiasm because it is an expensive stone cold road to oblivion for them. If they believe you are judgement proof they will be gone.

Since hardly nobody they pursue  knows as much as you now do, you will possibly very quickly not be worth chasing!

Lastly remember that I am a complete stranger and take nothing I say as absolute fact. Take it as data points to verify as accurate or not. My motivation to post this  is favoring the “little guy”.  

I previously faxed them 2 response letters (1st was form letter from SSA) to their letters about collecting on a debt.  It basically says my only income is from SSA and exempt from debt collection (excepts being taxes, child support or student loan).  The 2nd response letter I reminded them of my 1st response letter and stop harassing me or I'd file a complaint.  A month later they filed the lawsuit.  Funny thing is going to be if they fork out more money pursuing it and find out they won't be able to collect a dime.  In fact, they could find themselves owing me legal fees, travel costs  and fines by State of CA if they want to continue the full-court  (pun intended) press.