CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Can Filing for Bankruptcy Affect Your Social Security Benefits?

Bankruptcy And Social Security Tampa, St Petersburg, And Pasco Florida.Many 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.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can I File for Bankruptcy Without a Job?

Bankruptcy is often considered a tool used by people without money, without income, and without any financial hope. The truth...
Read More

Should I Use Retirement Savings to Avoid Bankruptcy? A Tampa Bankruptcy Lawyer Can Help You Protect Your Retirement Nest Egg

Withdrawing money from your retirement savings is rarely advised by financial experts, even if you are facing bankruptcy. Working with...
Read More

Can You File for Bankruptcy and Keep Your Home

Foreclosure is something that occurs after a homeowner has missed multiple mortgage payments. Working with a Florida bankruptcy attorney helps...
Read More

Is There Such a Thing as Mortgage Bankruptcy?

Your home is one of your primary concerns when filing for bankruptcy. Can you claim bankruptcy and keep your home?...
Read More

What Do You Need to Know about a Home Auction in Bankruptcy?

Home auctions are a common topic that arises when someone is faced with the prospect of bankruptcy. Bankruptcy protection for...
Read More

Can a Florida Bankruptcy Attorney Help Me Avoid Eviction

Losing one’s home is one of the most common concerns you can have when filing for bankruptcy. A Florida bankruptcy...
Read More

Covid-19 Tax Tips

The COVID-19 pandemic has affected a variety of things including taxes. These COVID tax tips can help you prepare and...
Read More

How Can a Bankruptcy Attorney in Tampa Florida Help Me If I Fall Behind on My Mortgage After Filing for Bankruptcy?

Many people find that filing for bankruptcy provides all of the financial relief they need to get back on track....
Read More

Are Bankruptcy Laws Designed to “Trip” You Up? Here’s How a Bankruptcy Law Firm Can Help You Avoid Trouble

It’s no surprise that people are skeptical of how bankruptcy can help their financial situation. Many have heard stories about...
Read More

What is a Discharge and What Does It Stop?

The primary benefit of bankruptcy is the discharge. Filing for Chapter 7 bankruptcy results in the elimination of your legal...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

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

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo

Call For A Free Initial Consultation

813.254.5696

Tampa Office

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

Map And Directions

St. Petersburg 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

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions