If you live by a retirement fund, you are likely to have a very fixed income. What can you do when debt collectors tell you that they will use this income to pay off their debts? Here's what you need to know about debt collection and how it affects your retirement.
Keep in mind that each state has different rules, so it's important to consult your state's attorney before assuming the following rules apply to you. In Florida, the following applies:
- The debt collector must first file a lawsuit in an attempt to decorate any funds;
- Retirement income in the form of social security is exempt from debt collection;
- The IRA and 401 models are protected.
Threat to retirement security
The Federal Fair Debt Collection Act' denies the threat of a debt-receiving agent manufacturing company that cannot or will not act. However, this does not mean that the person calling you will not try to transfer your pension. The debtor charges a commission, which means they will try anything to get you some money - even if it involves a threat to funds that are actually exempt from debt collection.
If the debt collector threatens to collect your pension, you can even sue the company in return.
Exceptions to retirement rules
There is an exception to the retirement rules. If you owe the federal government money, you will have to pay the debt. If you do not receive a government student loan or owe money to the IRS, the government can conduct social security checks and/or click on your bank account.
Don't panic, you can still take steps to protect your retirement savings. What can you do if you owe the government money? Here are some things to do:
- Pick up the phone and try to reach a payment arrangement with the creditor;
- Contact a lawyer who can help you make arrangements that will not lead to the exhaustion of retirement funds.
If this sounds like you are facing and you are concerned about a retirement fund, be sure to contact a qualified attorney in your state. Without a pension, life is almost impossible!
Orignal From: What can debt collectors touch and take? Part III: Retirement Fund
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