How older people protect their bank accounts from medical debts, bank garnishments and other creditors.

 

Nowdays with high hospital bills and no insurance, people end up with massive bills they cant pay. Its now similar with credit card debt 

Many older folks now use debt to there benefit knowing its different for creditors to freeze a bank account or sieze the check.

How they protect themselves isnt really difficult or hard. They use the law to there benefit.

For one thing assets in a 401K are protected by ERISA laws. Even in bankruptcy they cant be taken. Its similiar for ROTH accounts, the money cant be taken in bankruptcy either.

So older folks use those benefits to there benefit by going through bankruptcy or having the creditor writing off the debt. 

In some States the statute of limitations is two years, like Iowa. If after two years a creditor comes after you, you can just take them to court and get damages for whatever injury you endured. 

Of course all States are different and theres exceptions sometimes so you need to do your research.

Another way the creditors can get money is by putting a lien on your bank account. The thing is social security is protected by law and banks know this.

The federal law says you can have up to two months of a government pension check, social security check, and other pension checks like rail rode pensions and State pensions. 

So if you have 1k check you can have 2k protected from seizure. 

Most creditors know this but if they dont the banks do, if there still is a seizure or mistake you can file documents at the court and get your money back, but it takes time.

So its useful to have cash, folding currency hidden away somewhere or an offshore bank properly set up and reported to uncle sam. If its over10k it needs to be reported.

Wealthy people have bank accounts set up abroad to protect themselves from creditors and other bad actors.

Nowdays most offshore banks dont want North Americans as clients because of compliance with uncle sam and if they do the deposits need to be substantial usually 250K or more.

Obviously theres exceptions to this rule if you have a second passport or residency set up somewhere, then its usually a few hundred dollars to set up a local USD account or USD account. 

More and more expats/ retirees are doing this and using credit to there advantage. 

If you need to hide cash from creditors you can always withdraw cash to be under the limit,  or buy gold coins stored onshore or offshore or just in your shoe box. 

Off course if you get into a lawsuit youll have to disclose these things, or lie under court, which I dont recommend or suggest.

What many do if it comes to it is get out of jurisdiction and have a friend or lawyer handle it.

There are law firms who handle debt negotiation for low prices and NGOs to.

They usually specialize in helping elderly clients but also help with medical debts no matter the age.

A lawyer can help you disguise your assets without breaking the law, or get caught up in fraudulent conveyances. 

As always theres more to this but I just wanted to offer a few ideas to help people survive and prosper as the empire declines or maybe its just the beginning. 

We still have a lot of liberties in North America so we are better off than most to survive and prosper come what may.

Good Luck, Happy Hunting.