Retirement income

[strongbob]

What is the name of your state? California

I have several credit cards maxed out and i recieve only Soc Security and to Union retirement incomes. I have not defaulted on making payments, but if something happened to me. Could they attach any of my retirement income or my bank account.

Thank you Robert Harrington
bobh0630@aol.com

 

[Ladynred]

SS and Retirement income are exempt from siezure either in BK or from judgments.

 

[strongbob]

Hello
Thank you very much. So i know that retirements incomes are protected. I am leaving the USA for a few years and i am retired. I plan on paying my debts, because i have great credit and want to keep it. But I will have my credit cards on auto payment. My worry is what if some things goes wrong and i am unable to pay, due to computer problems or unforseen money problems. I will be in a 3rd world country , so contacting them will hard.
Thank you again and any other advice will be appreciated
Robert H

 

[JETX]

SS and Retirement income are exempt from siezure either in BK or from judgments.

And that is not exactly correct.

If the writer doesn't pay the bill and the creditor gets a judgment against him, most states exempt retirement and SS income from seizure.

However, since the writer asked "if something happened to me", the correct answer should have included:
If you were to die, the creditors could make a claim against your estate, in which case the retirement and SS exemptions would not apply.
Further, your being out of 'touch' could cause you the additional problem that any claims of exemptions of funds for retirement and SS, must be made by YOU. This is not an automatic exemption.

I see the following scenario playing out:
- Creditor files a lawsuit. Since you are out-of-country, with no designated domestic agent, plaintiff could notice by publication.
- You (not knowing of lawsuit) fail to appear and plaintiff gets a default judgment against you.
- With the default judgment in hand, creditor finds your accounts and executes (or levys) against it.
- You (again being out of country), do not hear of this until the time to claim exemption has passed and funds distributed.
Net effect.... your normally exempt assets are used to pay the debts.

 

[bearfootball]

Strongbob,
Some people on this board have "agendas". They camp out on these boards and encourage people to do what makes them the most money. I would seek professional help and only truly listen to Ladynred. That person looks out for you and me.

 

[JETX]

And clearly, barelythere, you have an agenda. And I doubt that Ladynred is in need of your very questionable 'support'. She does just fine on this forum....

So, exactly what was incorrect in my post or is this just another of your 'wayward' comments??

 

[bearfootball]

JETX,
Actually I wasn't referring to you. Your info has been helpful, I was just giving my opinion. You have made a couple of statements that remind me a scum sucking collection robot, but overall you've been informative.

 

[adevine]

Aren't just certain retirement funds exempt? Roths aren't in all states, are they? And don't they have to be ERISA?

 

[JETX]

Each state defines their own exemptions, and some states do exempt certain retirement funds.

For example, California (where this writer lives) exempts the following retirement sources:
Funds exempt for county employees, county firefighters, county peace officers and public employees. IRA exemptions for conventional, Roth, SEP and SIMPLE plans. Limited to amount necessary for support of debtor and dependents.

And in Adevines case, Indiana exempts the following:
Funds exempted for firefighters, police, sheriffs, public employees and state teachers. IRA exemptions for conventional, SEP and SIMPLE plans. Nondeductible contributions are not protected.

To my knowledge though, ALL states exempt SS income.