If you’re receiving Social Security benefits every month, you might be concerned about how they’re going to be treated in bankruptcy. Will the bankruptcy court have the power to take away your benefits?
Here’s some more information so you can have peace of mind during this tough time.
How Bankruptcy Affects Social Security
If you file for bankruptcy and you’re an SSDI or SSI recipient, then these benefits are going to be exempt and you can keep them. Current payments, lump sum payments, past payments, and future payments will be eligible for exemption. You’ll just have to prove that this money is indeed coming from the Social Security Administration. This means that you should keep records of the payments you receive each month, just in case.
How to Avoid Commingling
You’ll need to be careful to avoid commingling your SSDI and SSI payments with your other income. They shouldn’t go into the same bank account where your other assets are stored. Instead, keep them in a separate account to be safe.
Keeping Your SSDI and SSI Benefits in Tact
If you have any concerns about your SSDI and SSI benefits and bankruptcy, then you should work with an SSDI and SSI lawyer to protect them. With their help, you may even figure out a way to get out of filing for bankruptcy while ensuring that you have financial security no matter what.
Working With Schott Law
If you need help with SSDI and SSI benefits and bankruptcy, Schott Law is here for you in your time of need. Maggie Schott is an SSDI & SSI lawyer serving Washington and Idaho. Contact us now at (509) 328-5789 to start your application.