CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

Can Filing for Bankruptcy Affect Your Social Security Benefits?

Social SecurityMany people rely on social security benefits to pay their bills. Unfortunately, it can be difficult to make ends meet, even when you’re receiving regular SS payments. This is especially true if you experience a medical emergency or other financial crisis that was unexpected.

If you find yourself considering bankruptcy and you’re curious how filing would affect social security benefits, you aren’t alone.

Creditors are given a great deal of power when it comes to collecting money they are owed. They can contact you on the regular basis and take legal action against you. If granted permission from the court, they can even take money directly from your bank account or put liens on your property.

It makes sense that anyone receiving social security payments would be concerned that creditors could take this money from them. And if you rely on this money to pay your rent or mortgage, pay the cost of your utilities, and purchase groceries, this can be a frightening thought.

Do You Rely on Social Security for Day to Day Expenses?

When a person files for bankruptcy, the court takes into account the money needed for basic living expenses. A great deal of control is handed over to the bankruptcy trustee, but the person filing is granted permission to keep money that allows for a minimum standard of living. This includes social security benefits.

The restrictions regarding social security benefits are included in the Social Security Act. Section 207 of law states:

“The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law.”

The protection afforded in the law applies whether you are receiving Social Security because of retirement, disability, or the death of your spouse.

Ensuring Social Security Payments are Protected in Bankruptcy

There are a few things you should remember if you are filing for bankruptcy and all or part of your income comes from Social Security payments.

You must be able to prove the money you have is from Social Security, which can be difficult if your finances are co-mingled. What this means is if you receive SS payments and they are deposited into an account that also receives money from other income streams, it could complicate things and increase the odds a creditor will try to access that money.

Keep in mind, the protection from confiscation of your Social Security money does not apply to debts you have to the IRS or the government. The IRS can seize your money if you owe back taxes.

If you’d like to know more about how IRS debt is handled differently than consumer debt, check out this information from the IRS.

Laws regarding bankruptcy and Social Security can be confusing and in some cases, a creditor might try to take advantage of your situation. A bankruptcy attorney can prevent this from happening and can answer any questions you have about Social Security and bankruptcy, or about bankruptcy in general.

To learn more or to speak to someone about your situation and how your income sources affect filing for bankruptcy, contact the Law Office of Robert M. Geller at 813.254.5696 to schedule a consultation.

Tampa Bankruptcy Law Blog

What is the “Wild Card Bankruptcy Exemption”?

What is the “Wild Card Bankruptcy Exemption”?

There are a lot of terms that arise when you’re considering bankruptcy. It’s important to understand what each thing means...
Read More
Will Filing for Bankruptcy Help You Remove a Court Ordered Judgment?

Will Filing for Bankruptcy Help You Remove a Court Ordered Judgment?

A court ordered judgment against you related to debt can wreak havoc on your life, but it might be possible...
Read More
Understanding Credit: What Factors Affect Your Score

Understanding Credit: What Factors Affect Your Score

Dealing with financial problems can be one of the most difficult challenges you’ll ever face. Not only is it overwhelming,...
Read More
Health Issues Drove Me to Bankruptcy and I’m Still Getting Medical Bills: Can Bankruptcy Help?

Health Issues Drove Me to Bankruptcy and I’m Still Getting Medical Bills: Can Bankruptcy Help?

Medical issues are one of the most common reasons people file for bankruptcy. In most cases, health emergencies arise unexpectedly...
Read More
Is Filing for Chapter 7 Bankruptcy a Bad Idea?

Is Filing for Chapter 7 Bankruptcy a Bad Idea?

If you’ve been dealing with financial challenges for an extended period of time, chances are you’ve considered bankruptcy. Most people...
Read More
Can Bankruptcy Raise Your Credit Score? You Bet!

Can Bankruptcy Raise Your Credit Score? You Bet!

One of the primary concerns people have when filing for bankruptcy is whether or not doing so will affect their...
Read More
Can Filing for Bankruptcy Affect Your Social Security Benefits?

Can Filing for Bankruptcy Affect Your Social Security Benefits?

Many people rely on social security benefits to pay their bills. Unfortunately, it can be difficult to make ends meet,...
Read More
What to Do If a Creditor Tries to Collect after Your Bankruptcy Case Closes

What to Do If a Creditor Tries to Collect after Your Bankruptcy Case Closes

Bankruptcy is one of the best options available if you’re experiencing serious financial struggles. It can provide you with relief...
Read More
How Bankruptcy Can Help You If You are Facing Foreclosure

How Bankruptcy Can Help You If You are Facing Foreclosure

Owning a home is part of the American dream and losing that home through foreclosure is a nightmare. Mortgage foreclosure...
Read More
How Can Undue Hardship Help You in Bankruptcy If You’re Dealing with Student Loan Debt?

How Can Undue Hardship Help You in Bankruptcy If You’re Dealing with Student Loan Debt?

Despite millions of Americans struggling with student loan debt and a good deal of them defaulting on or at risk...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo 10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2017 Robert Marc GellerReviewsout of 32 reviews LEA

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay Online    

Office Locations

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405
Maps & Directions


Tampa Law Office Map

Satellite Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: 727-532-3939
Maps & Directions


Map and Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.