![]() The money on a prepaid debit card is not held in a bank account with your name. A prepaid debit card is like a renewable gift card. But with a prepaid debit card, you load money onto the prepaid card until it is used up, and then add more. When you make a purchase with a regular debit card, your bank immediately deducts the cost of the purchase from the bank account the debit card is connected to. It’s just like paying with cash.Ī prepaid card is also as different from a debit card as it is from a credit card. A prepaid card allows you to make purchases using your own money rather than borrowing money from a creditor and paying interest and fees for the privilege. It’s not supported by credit issued by a bank instead, it’s paid for with cash. A prepaid Visa card looks like a credit card but is entirely different. Sometimes a prepaid Visa card is suggested as a means to protect money from being garnished. If that unprotected money is held in a bank account, it could be subject to garnishment. However, sometimes persons may have extra money that is not from a protected source, such as proceeds from the sale of some asset like a home or car. ![]() Federal banking rules also automatically protect from garnishment twice the amount of monthly Social Security deposited into a bank account, no matter the source of funds in the account at the time of the garnishment. ![]() Collectors cannot garnish federally protected income like Social Security, pensions, VA and disability benefits. Seniors and disabled persons normally have nothing to worry about if faced with a judgment for old debt. Collectors obtain a court judgment by filing a lawsuit, serving a summons and complaint, and eventually obtaining a judgment. A collector can’t garnish anything without a court judgment. ![]()
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