Posted on June 18, 2009 at 11:15 am I live in North Carolina and may get sued by a collection agency for a credit card debt.  I am aware they can freeze my bank account.  My question is, could they freeze my father's bank account.  He is disabled and lives in a care facility.  The only money deposited in the account over the past two years has been his SSI direct deposit.  Almost all of the money spent from the account goes to his care facility each money.  He is the primary account holder, but I am listed on the account.  This is largely for convenience as I handle all of his affairs for him.

Posted on June 18, 2009 at 11:32 am If he is the primary cardholder, and they filed a lawsuit, obtained a judgment and executed that judgment, they could do so by levying or freezing his bank account. However, it is my understanding that federal law makes social security income exempt from levy and/or garnishment to satisfy a credit card debt.

Posted on June 18, 2009 at 1:40 pm What if i were to remove my name from the account?

Posted on June 18, 2009 at 1:46 pm If you are an authorized user on the account then your name can be removed. If you are a cosigner on the account then you will not be able to have your name removed and will be liable for the debt as well. However I am not sure what you are asking? It doesn't change anything in terms of what they can do to your father, but like I said, social security is exempt from levy and/or garnishment.

Posted on June 18, 2009 at 3:40 pm Are authorized users liable for the debt if it was incurred by the primary account holder?

Posted on June 18, 2009 at 9:10 pm Authorized users have no liability for a debt.  Liability only falls on those who are under the contract - or if you live in a community property state, your spouse may be liable regardless of whether he or she is on the contract.     

Posted on June 19, 2009 at 6:16 am I am not sure if I am a cosigner or authorized user on my dad's checking account.  Can I just call the bank to find out?The debt is not related to my fathers account, the debt is for a credit card solely in my name.  I just don't want the account to get frozen and inconvenience him/his care facility.If I remove my name from his account a collection agency suing me for my debt would not be able to freeze his account then, correct? 

Posted on June 19, 2009 at 7:43 am Brad- your most recent statement is very confusing. First, you say that you aren't sure if you are the primary cardholder or the authorized user. You then go on to state that the debt is not related to your father's account and that the credit card is solely in your name. And then finally you ask if you were to remove your name from his account would they be able to freeze his bank account? So, I am assuming the last question is in regards to your name on his bank account? Or is it your name on his credit card as an authorized user? I thought you said the credit card was in your name only? I am confused so please clarify.

Posted on June 19, 2009 at 12:34 pm I apologize for the confusion.  The debt has nothing to do with my father, it is a credit card debt solely in my name.My father is the primary account holder on his checking account.  We went to the bank together a couple of years ago to also list my name on the account, to aid in the ability for me to help handle his affairs.  I think the confusion is because I don't fully understand the terms cosigner or authorized user.  Maybe you thought I meant on the credit card, which he is in no way affiliated.  I"m assuming I would be considered an authorized user on his checking account.My concern is that a judgement will be passed against me for MY credit card debt, and as a result HIS checking account could get frozen (since my name is listed on it).  I understand they cannot take the money out b/c 100% of it is SSI deposits.  I just don't want to muddle his affairs with mine un-neccessarily.  I'm just curious if I removed my name from his checking account, if it would fully prevent this.  I believe on the form you fill out when a judgement is passed there is a section to disclose this kind of stuff, just trying to keep this madness as simple as possible.  

Posted on June 19, 2009 at 1:10 pm Hey Brad- ok great, thank you for clearing that up that makes perfect sense. In fact, after reading your previous comment it was me who misunderstood you- your wording was fine so I am sorry for that.  I would suggest going down to the bank and trying to remove your name from the checking account for precautionary measures. I can't imagine why a bank would prevent you from doing this. While the SSI is exempt, I think you could avoid a couple of headaches by taking action. These are very unique circumstances that you are facing, and I am not exactly sure if they could even attempt that, but I would say better to remove yoru name and avoid any future hassle with the creditor. And from what I understand for checking accounts you and your dad would be considered joint account holders, I believe the term authorzied user is only in reference to credit cards.