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  1. #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would be without the use of your money until you got the creditor to rescind the levy or you went to court to get it rescinded, if that's even possible.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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