Filing a personal bankruptcy case can be a difficult decision. Worrying about whether your social security benefits will be affected by your filing may be adding to your stress. However, you may be surprised to learn that your social security benefits are not only excluded from the Chapter 7 means test, but are exempt from creditors!
It is important to note that in order to ensure that your social security benefits are fully protected, you should have them deposited into a dedicated bank account that does not have other funds deposited into it. If your social security benefits are combined with other funds, the bankruptcy trustee may have difficulty separating the two.
Please keep in mind that every case is different. If you are planning to file a personal bankruptcy, you receive social security benefits, and would like to schedule a no-cost consultation, please contact our office by completing the form on this website or calling us at (954) 516-2566.
Wall Street Journal
Bloomberg Law
Law 360