Kim Webb asked 2 months ago
Hi Brian, I found this online and wonder if you can explain what it means for a senior aged 62 and their only source of income is Railroad Disable retirment? Im disabled and collecting only my retirment income thru the Railroad retitment Board,.
"You may hear that seniors shouldn’t worry about old debts. This is partially, but not completely, true. Many seniors are “judgment proof,” which means their income is derived from retirement, Social Security, or other accounts that can’t be garnished. Debt collectors may not bother to take seniors in this situation to court, since they’re unlikely to get the money that way. "
is this something I can use in court ? Thank you
Brian Parker Staff answered 2 months ago
Yes, a lot of cases die because of medical or financial hardship or the debtor has passed a certain age. The point of the article is that your retirement income and social security cannot be touched by a judgment, generally. So, collectors don't bother pursuing the claim as they don't want to spend the money chasing blood from a stone. Let the collector know early that your only source of income is your retirement and show them three months of bank statements to prove it. Cover up the personal info. Also, never co mingle your retirement funds with non "immune" funds or you lose the immunity in a general sense. I advise my clients that receive retirement or social security funds (exceptions to being collected) to create accounts named "Social Security" or "Retirement" accounts and then never put any other funds in that account. This is general information. I hope it helps. Yes, you could qualify for a financial hardship dismissal. They will dismiss only without prejudice in case you come into a windful later on but I have never seen one of these dismissals come back. Good luck.
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