Protecting Your Bank Account from Creditors: A Comprehensive Guide

This blog post summary and YouTube video focus on the issue of protecting your bank account and Social Security income when being sued by creditors. Here’s what you need to know.

Understanding the Threat from Creditors to Your Bank Accounts and Social Security

When faced with a lawsuit, ignoring it is rarely the right step to take. If you can’t afford a lawyer, then contact the clerk’s office where the lawsuit was filed since they usually have the forms you need to file a response. Your local Legal Aid may also provide guidance or even represent you at no cost.

Responses to a lawsuit are due within twenty to thirty days, depending on the state. But without a response, the case moves along faster, allowing the creditor to freeze your bank accounts, garnish your wages, and put liens on your assets.

Creditors Know Your Bank Account Information

Because creditors were receiving payments from your account, they have the information they need to freeze your account. A creditor can get a court order from the judge allowing your account to be levied.

• Your IRA and 401K are Protected From Creditors Unless You Do This!

Since buying time is sometimes a necessity in a lawsuit, that can be accomplished by opening a new account at a different bank.

The Impact of a Frozen Account

Once a bank account is frozen, unless those funds are protected, such as Social Security income, chances are the funds cannot be recouped. So always act fast!

Protecting Social Security Income

Social Security income is generally protected from garnishment. However, mixing it with other income can jeopardize this protection. So, it’s best to keep Social Security income in a separate account to safeguard it.

• 2025 Maximum Contributions for IRAs and 401 (k) s

For example, if you receive Social Security but also work, your employment income should be in a separate account.

I hope this video helps you better understand the steps you should take in a lawsuit. To watch other videos on my YouTube channel, click this link.

Looking for additional categories? Click the links below:

• Bankruptcy
• Your Wallet

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books. Archives can be found via this link.

Disclaimer: This information is intended for general knowledge and informational purposes only, without any legal advice. Consulting with an attorney is crucial for specific legal matters.

Updated on March 27, 2025.