Credit Card Default and Social Security Income

[baseballfan]

My question involves collection proceedings in the State of: New York
9/1/2015
Hello,
Sorry for the entailed post but needed to provide all information in order to receive accurate replies.

Some Background Information:
I am a great believer in paying all debts but due to unforeseen circumstances now I can no longer do so even though I have always paid my monthly credit card and charge card debts for over 25 years on my own while employed. I am no longer employed due to being very ill. I find myself in a position where I must choose between making those 2 monthly payments from my husband's exempt funds and not getting our life sustaining medications, and nutritious foods to eat, or make the 2 monthly credit and charge card payments.

I am in my early 60's, married, home bound, and quite ill. I live in NYC in a rent stabilized apt., with my husband who collects a small monthly SS check, and a small pension in the form of a quarterly annuity. The annuity check is cashed at check cashing. SS is direct deposited into his bank account and is held in his name, but the a/c is also in trust for me and my name is also typed in the event he God forbid passes on, I will receive the remaining funds left in the account which was required by the bank to keep it open, after SS claims their back payment entitlement. I have no earnings, no retirement income, no non exempt assets at all. Neither of us have any non exempt holdings or assets. Only exempt funds coming in are from the 2 mentioned above. Bankruptcy is not a consideration since there are no funds to pay for it.

My creditor's APR's have been raised to heights which make it impossible to continue to pay monthly cc debt. I have tried negotiating to no avail with both creditors. They refuse to lower APR's and do not care that we have no non exempt funds. They state it will be a write off for them since they have insurance but the debts will be passed on to debt collectors for court ordered judgements, and I will be sued regardless whether earnings now are exempt or non exempt.

Some Questions Please, and many thanks in advance for your replies:

Do past Commingled funds in NY SS account make garnishment possible?
Some other checks may have been deposited into that account like tax refunds from years ago, so if considered commingled should my husband open another SS direct deposit account at another bank and transfer his SS dd payments over so the new SS account will no longer reflect any past commingled debt in his original SS dd account?

My credit card debt:
My 2 credit card debts total $16,000.00 and my husband was placed on both my charge and credit card accounts as an additional credit and charge card user. I made the requests by telephone and he never spoke to or signed anything to become the additional card user on my charge and credit card accounts. If I am sued for credit card debt and a judgement to collect is issued if I stop making monthly payments will the judgement come in my name only since I am the original party who signed for the credit and charge cards initially, and verbally placed my husband on my accounts as an additional card user? (Please kindly advise)

Can my husband's SS direct deposit account or small annuity pension checks be garnished for payment? (Please kindly advise)

If taken to a NY court and judgement is filed against me can I show up by myself with all his legal documentation showing he supports me with his exempt earnings and we have no non exempt assets whatsoever? (Please kindly advise)

Also am I considered judgement proof or collection proof under my circumstances? (Please kindly advise)

It is a blessing to see your web site, so thank you for all your replies, and we wish you, and everyone continued success.

[Mr. Knowitall]

Where Social Security funds are direct deposited into a bank account, and such a deposit has been made within the past two months, there are automatic protections against garnishment that would be triggered if a creditor attempts to reach that money. It may be possible for the creditor to establish that some of the money in the account is from a non-exempt source, depending on what the account records show.

If the card is only in your name and your husband is merely an authorized signer, then the creditor should be suing only you for the debt -- but I cannot promise what a creditor might do in the future.

If you end up at a creditor's exam over your debts then, yes, you can attempt to establish in that context that you have no assets that a judgment creditor is permitted to garnish.

[baseballfan]

Many thanks Mr. knowitall for all your legal advisments.

They are greatly appreciated, and I wish you, and everyone continued success in all future endeavors.

Love the web site and the topics, along with the wonderful advice Thanks again!