Social Security Income & Bankruptcy
If you are receiving Social Security income and need to file bankruptcy, contact the Texas Bankruptcy Attorneys at The Law Offices of R.J.Atkinson. We can answer your questions about Bankruptcy and Social Security income at a free bankruptcy evaluation.
People living in Texas that receive Social Security income, and need to file for bankruptcy are often concerned that their creditors may be able to take their Social Security income if they file bankruptcy. Alternatively they may also be under the impression that creditors outside of a bankruptcy context can take their Social Security income.
Social Security income is considered exempt in bankruptcy. In other words your creditors cannot take your Social Security income benefits in a bankruptcy proceeding. Since Social Security benefits are exempt under 11 U.S.C. § 522 (d)(10)(A) no creditor including the bankruptcy trustee can take your benefits. Federal Law provides that Social Security benefits are exempt from garnishment, levies, or assignments by most creditors, and it is likewise exempt from the trustee in a bankruptcy case whether it is under Chapter 7 or Chapter 13 Bankruptcy.
Now even though Federal Law and Texas Law allow exemption of Social Security income in bankruptcy, there are instances where certain kinds of taxes, student loans, social security over payments, or debts due to Federal agencies may attach to Social Security income outside of bankruptcy. These types of attachments may be in effect when someone files for bankruptcy or may even be the motivation behind filing for bankruptcy. In these cases the automatic stay of bankruptcy will temporarily stop such action but after the case is filed things can change.
Every case is different. And, since every case is different, every case should be evaluated by bankruptcy attorney who can examine the specifics of your case to determine whether your Social Security income may be attachable by a creditor outside of bankruptcy.
Generally most all income payments you may receive under the Social Security Act are exempt in a bankruptcy proceeding. These go to include Social Security retirement income, SSI or supplemental security income, SSDI or Social Security Disability Insurance benefits.
If you receive Social Security or rely on Social Security income to pay for all of your necessary living expenses, encountering a financial difficulty however temporary could make things go from bad to worse. Many people in Texas receiving Social Security not only live on a fixed income, but often have no other source of income available, which can exacerbate any financial problems. Filing for bankruptcy can provide many benefits to those on Social Security needing debt relief. If you are facing financial problems such as foreclosure, repossession, or loss of property, we may be able to help. Bankruptcy was designed to help honest debtor’s who need debt relief and a fresh financial start.
If you are receiving Social Security income and need to file for bankruptcy, Contact The Law Offices Of R.J.Atkinson. We would like to help you eliminate your debt and get a fresh financial start. Our Texas Bankruptcy Attorneys can explain how your Social Security income would be treated in a bankruptcy filing at a free initial consultation.
Social Security Income — Bankruptcy — Debt Relief — Retirement Income
Contact Texas Bankruptcy Lawyer R.J.Atkinson: 800-436-9056