CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

Can Filing for Bankruptcy Affect Your Social Security Benefits?

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 are Your Bankruptcy Options?

What are Your Bankruptcy Options?

How Bankruptcy Works Bankruptcy can be a powerful tool to help you get back on track financially. But before you...
Read More
Bankruptcy and Your Tax Return

Bankruptcy and Your Tax Return

How Bankruptcy Can Affect a Tax Return Receiving an income tax return can feel great and help you get caught...
Read More
Borrower Beware! What You Need to Know about Debt Relief Services

Borrower Beware! What You Need to Know about Debt Relief Services

Are Debt Relief Sevices Legit? If you feel as if you are drowning in debt you’ve no doubt considered a...
Read More
Four Mistakes to Avoid When Managing Your Finances after Bankruptcy

Four Mistakes to Avoid When Managing Your Finances after Bankruptcy

Avoid These Common Financial Mistakes After Filing for Bankruptcy Managing your finances after bankruptcy can be a challenge, especially if...
Read More
Tips for Handling Creditor Harassment

Tips for Handling Creditor Harassment

Creditor Harassment and Bankruptcy Dealing with a significant amount of debt is difficult enough, but when creditors began hounding you...
Read More
Unexpected Debts that Can Lead to Bankruptcy

Unexpected Debts that Can Lead to Bankruptcy

Unexpected debt can cause financial issues and Bankruptcy Unemployment, poor management of credit cards and even divorce can push people...
Read More
What You Need to Know about Tax Identity Theft and How It Can Affect Your Credit

What You Need to Know about Tax Identity Theft and How It Can Affect Your Credit

Tax Identity Theft and Credit The increasing popularity of filing tax returns online has given way to a rise in...
Read More
How To File for Bankruptcy [Infographic]

How To File for Bankruptcy [Infographic]

The Bankruptcy Filing Process Need to file for bankruptcy but not sure where to begin? The Law Offices of Robert...
Read More
Five Things You Need to Know about Bankruptcy Fraud

Five Things You Need to Know about Bankruptcy Fraud

What is Bankruptcy Fraud The average person filing for bankruptcy has no intention of committing fraud. He or she is...
Read More
The Importance of Being Prepared: What You Need to Bring with You to Your Bankruptcy Consultation

The Importance of Being Prepared: What You Need to Bring with You to Your Bankruptcy Consultation

Preparing for a Bankruptcy consultation with a Bankruptcy Lawyer Filing for bankruptcy is a big decision. One of the most...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2018Robert Marc GellerReviewsout of 32 reviewsLEA

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

Pay Online   Bankruptcy Courses   

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


Tampa Law Office Map

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





Maps & 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.