I'm 66 and just retired last year, living in CA. I

I'm 66 and just retired last year, living in CA. I have a total debt of 28500, is it true that my creditors and collection agencies cannot touch my pension? Am I in a better position to negotiate settlement directly with creditors or does that even matter? what happens if I don't pay them?

3 Answers

Benefits cannot be garnished. Period. There are instances you may have come across where the CA has garnished SS benefits or UI benefits. These actions are illegal.

It is true that the creditors and collectors can't touch your pension. However, this does not mean that you should not pay off the debts. Rather you should negotiate with the creditors and collectors to settle the debts. If you don't pay them, your score will drop further. Apart from that, you may face legal problems. 

Yep…it’s true that creditors/collection agencies can’t garnish your pension. This is because pension is exempted from garnishment. But if you don’t make any payments, then they can file a lawsuit against you. Once the court issues an order against you, they can place a lien on your property. That’s why it’s better to settle your debts with your creditors. You may also enroll in a debt settlement program to reduce your debt amount.

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