Because of bankruptcy’s reputation, it’s normal to have questions about filing. When it comes to your social security benefits, you don’t have to worry. Individuals who file for bankruptcy are typically able to keep their social security benefits. You may be able to use them to pay living expenses while going through the bankruptcy process, and after receiving a bankruptcy discharge.
Under the Social Security Act, social security benefits are protected from garnishment and other legal proceedings, including bankruptcy. This means that social security benefits cannot be used to pay off debts that are dischargeable in bankruptcy, such as credit card debt or medical bills.
However, there are some exceptions to this rule. For example, if you owe a debt to the Federal government, such as a student loan or tax debt, a portion of your social security benefits may be used to pay toward the debt.
Additionally, it is important to note that the amount of social security benefits that you are eligible to receive may be impacted by filing for bankruptcy. In some cases, individuals who have a large amount of debt discharged in bankruptcy may see an increase in their social security benefits. This is because the debt that is discharged in bankruptcy may have been counted against their income for purposes of determining their eligibility for social security benefits.
- Filing for bankruptcy does not typically have a direct impact on your social security benefits.
- Social security benefits are protected from garnishment and other legal proceedings, including bankruptcy.
- Social security benefits cannot be used to pay off debts that are dischargeable in bankruptcy.
- There are limited exceptions for debts owed to the Federal government.
If you are considering filing for bankruptcy and are receiving social security benefits, you should consult with an experienced bankruptcy attorney to understand your rights and options. At Cornerstone Law Firm, our attorneys can help you determine the best path forward for you given your situation. Call today for your free consultation.