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

How to File for Bankruptcy without Losing Your Assets: How an Attorney Helps You Use Florida Bankruptcy Exemptions

If you're considering filing for bankruptcy, it's important to know that you can still keep your most important assets. The...
Read More

6 Things You Can Do to Make Filing for Bankruptcy Easier

Bankruptcy is often a confusing and scary process. It can be very overwhelming to face the prospect of declaring bankruptcy,...
Read More

4 Great Bankruptcy Resources for People Struggling Financially

Filing for bankruptcy can be a daunting process, but there are many bankruptcy resources available to help you through it....
Read More

6 More Things You Should Know About Bankruptcy

When you’re considering bankruptcy, it can help to know what to expect. Understanding the bankruptcy tricks and tips available to...
Read More

How to Take Control of Your Financial Situation

Do you want to learn how to take control of your financial situation? Does it feel as if your spending...
Read More

What Can I Do If I’m Being Harassed by Creditors?

Struggling with financial problems is bad enough. It gets a lot worse if you’re being harassed by creditors. What is...
Read More

Can I File for Bankruptcy without an Attorney?

The short answer to this question is yes, you can file for bankruptcy without the help of an attorney. However,...
Read More

Can Bankruptcy Improve the Health of Your Marriage?

Marriage and money problems go hand in hand. Financial problems cause everything from minor squabbles to full-blown marriage-ending fights within...
Read More

5 Common Budgeting Mistakes Newlyweds Make and How to Avoid Them

Budgeting mistakes are common, especially when you’re young. Not all newlyweds are young adults, but many first-time marriages do involve...
Read More

When Should Married Couples File for Bankruptcy Together?

There's no easy answer to the question of timing when it comes to bankruptcy. In some cases, it may make...
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