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  1. #1
    Join Date
    Dec 2017
    Posts
    1

    Default Can Disability Benefits be Taken By Your Creditors

    My question involves collection proceedings in the State of: Oklahoma. I have several issues with my back that have required several surgeries. I had a job as a receptionist at a Medical Clinic. They stood by my side through the first 2 operations, during that time I had applied for partial disability, which I received. I had to cut my hrs at the clinic, because of the disability. I was talked to 2 different times about how they needed a full time employee to do my position , and how many more surgeries I was going to have to have. I could tell they were at the point of wanting to let me go, but never said anything to me in regards to the matter.
    I went in to have my 3rd surgery on November 15th. The Office Manager contacted my mother and said I didn't need to come back in.
    Now I'm in Panic Mode! I have a lot of debt, car payment, credit cards, etc.. The only thing I've been able to pay are the necceties, rent, utilities, etc..I keep getting notifications from all of my creditors. My question is, can they take my disability out of my Chase Checking account? A friend told me, which everyone is giving me advice even when not asked, that if they get a judgement against me they can seize my account and take the money out. Is this true? I'm sorry this is so long, I just wanted to give you the backstory, and what is happening now. If ANYONE has been through this, or you are educated in this area, could you PLEASE give me some advice? I'm really scared, and I've never in my 45 yrs been through anything like this. Also, no I can't afford an attorney at this time to file bankruptcy. I would appreciate any educated information that anyone may have. Thank you very much!

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Can Disability Benefits be Taken By Your Creditors

    Your disability benefits are exempt from judgment in that they cannot be intercepted.

    See OK statute 36-3631.1:

    https://law.justia.com/codes/oklahom...ion-36-3631.1/

    Unfortunately, once the money is in the bank, it's just money and you risk having the account levied (frozen) and then you would be without the use of your money until you got the creditor to rescind the levy or you went to court to get it rescinded, if that's even possible.

    If you are receiving Social Security Disability your account has protection under federal law:

    https://www.federalreserve.gov/super...ures_final.pdf

    Private disability benefits have no such protection.

    Either way you risk some serious inconvenience if you keep your money in bank accounts and a judgment creditor gets it wrong, even by mistake.

    I suggest you keep your money out of banks (savings and checking), except for a minimal amount that will allow you to cash checks, and have your disability checks mailed to you, then pay your bills with money orders.

    By the way, there are other exemptions from judgment that may also apply.

    https://law.justia.com/codes/oklahoma/2006/os31.html

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