New Banking Reg To Mark Va Benefits Against Garnishment

[slangpdx]

I read in the NYTimes about a pending regulation that require banks to electronically mark certain deposits (apparently only electronic deposits) such as VA benefits, SS, etc. so that two months worth of payments would be protected from garnishment.

Is any one tracking this or heard of it?

[COOL BREEZE]

How would they determine what the break down would be if there are multiple accounts going in! Surely would be impossible.

At any rate, if sued and possible garnishment is going to occur, it would be your responsibility to inform the court those accounts are not subject to garnishment. You would have to ask the court for the appropriate paperwork to file to stop the garnishment, or by filing the financial paperwork.

Keep in mind, I am not an attorney, however my other hobby is credit issues and lawsuits-

[carlie]

I read in the NYTimes about a pending regulation that require banks to electronically mark certain deposits (apparently only electronic deposits) such as VA benefits, SS, etc. so that two months worth of payments would be protected from garnishment.

Is any one tracking this or heard of it?

Please post a link to support this.

Thanks

[jbasser]

It doesnt matter if they sue you or not. The only ones allowed to garnish this is a debt owed to Uncle Sam.

Federal law superceeds any other action based wether or not it is issued by a local judge or not.

Basser

[Chuck75]

In some locales, a judge can order that an account be "frozen" and then order summary garnishment/judgment.

In others, and you signed a "note" or other document, the terms of the note may include a "confession of judgment" that allows bypass of many of the laws concerning your rights.

The banking laws may come into play when you have a direct deposit account. The laws automatically allow a direct depositor to make a withdrawal to "correct an error". In theory, you might be able to really irritate a direct deposit recipient if you went through the wickets to take back a direct deposit.

DISCLAIMER

This is NOT legal advice. For that consult a Lawyer.

[Pete53]

Its been awhile but when my Mother in Law passed for some reason SS thought that she was the husband and grabbed about 6000 bucks out of his checking account. It took about 4 months to get that straightened out. Her name was Billie Simms K******** and his was A L K******** .

I think at the current tme they can get anything back from a direct deposit account that they want.

For my own I owed the IRS a lot of money we lived off my 401 and had big penalities and interest. After 10 years they dropped the liens on my home over 55000 but IRS never did anything to my checking account.

I am not a lawyer but I think that the government can do about anything it wants too. I actually believe that when I was in trouble they really checked me out and decoded that I was just another crazy Veteran and from that point except ofr sneding notices of how much I owed and grabbing any refunds I had they did nothing else.

[GuaymasJim]

http://www.nclc.org/images/pdf/pr-reports/pr_treasuryrule_protectedbenefits.pdf