CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Social Security and Bankruptcy: Do I Need to Worry About My Income?

Social Security And Bankruptcy Tampa, St Petersburg, And Pasco Florida.How Bankruptcy and Social Security Are Related

Bankruptcy is one of the best tools available for managing significant debt and easing financial worries, but it isn’t something you should take lightly. Filing for bankruptcy can affect many areas of your life in good and bad ways, so it’s important to consider its effects before taking the plunge.

One of the primary concerns that arise when considering bankruptcy is how it will affect your income. Bankruptcy requires giving up some control of your finances and in some cases, this will affect your income.

If you’re receiving social security benefits, you likely have questions about how bankruptcy will affect your income. Should you be concerned about social security income if you file for bankruptcy?

In general, social security benefits are exempt in bankruptcy cases. This is a federal law, so it doesn’t matter where you live when you file for bankruptcy. As an exemption, the bankruptcy court will not gain access to your social security benefits and cannot take them as part of your bankruptcy case.

However, this doesn’t mean your benefits will be completely unaffected when you file for bankruptcy.

One of the most important things to consider when filing for bankruptcy and determining how it will affect social security benefits is the type of bankruptcy you’ve chosen. Chapter 7 and Chapter 13 bankruptcy can impact social security benefits differently.

Chapter 7, Chapter 13, and Social Security

If you file for Chapter 7, you’ll be required to report any income you’ve received in the six months leading up to filing. This includes your social security income, but your risk for having to turn those benefits over to the court is relatively low.

The only way your social security benefits can be taken from you when filing for Chapter 7 is if they are combined with other income. This is something to consider if your social security income is deposited into a bank account that includes other funds.

In Chapter 13 bankruptcy you get to keep your assets as long as you commit to an ongoing repayment plan. The plan is based on your income, which means social security can be used to calculate your financial situation, but those benefits cannot be used to repay your creditors. This means if you rely solely on social security as your income you might not qualify for Chapter 13.

The same rules apply for those who received social security benefits in a lump sum, but again, commingling funds can change your situation. The best way to avoid problems with social security income when filing for bankruptcy is to ensure those funds are deposited into a separate bank account.

If you’d like to learn more about social security, in general, check out this information from the Social Security Administration.

A Bankruptcy Attorney Can Help You with Exemptions and Protecting Social Security Income

Protecting social security income is one of the reasons it’s so important to work with an experienced bankruptcy attorney when filing. He or she can assess your situation and determine if anything above and beyond the basic protections needs to be done to protect your social security income.

If you have questions about social security income and how if filing for bankruptcy can affect it, we can help. For more information or to speak to someone about your situation, contact the Bankruptcy Law Office of Robert M. Geller at (813) 254-5696 to schedule a consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

10 Signs You Should File for Bankruptcy

When it comes to your finances, there may come a time when you feel like bankruptcy is the only way...
Read More

What Do You Need to Know Before Filing for Bankruptcy? A Chapter 7 Bankruptcy Attorney in Florida Can Help You During this Time

What happens during the time leading up to filing for Chapter 7 bankruptcy? A Chapter 7 bankruptcy attorney in Florida...
Read More

What Does It Mean to Declare Bankruptcy?

What does it mean to "declare" bankruptcy? Your bankruptcy law attorney will help you through the process. Declaring bankruptcy is...
Read More

Student Loan Forbearance Ends April 30th. Here’s What You Need to Know

The federal government extended forbearance of repayment of student loans during the COVID-19 crisis. This forbearance was due to end...
Read More

Is Better Money Management on Your List of Resolutions for 2022?

If you’re like most Americans, improving your financial situation is on your list of New Year’s resolutions for 2022. Whether...
Read More

3 Reasons to Send Your Bankruptcy Attorney in Tampa Florida a Christmas Card

Have you begun making your Christmas card list yet? Did you include your bankruptcy attorney in Tampa, Florida? It seems...
Read More

What Was the Biggest Money Management and Bankruptcy News of 2021?

Like most years, bankruptcy was a topic that arose in the news many times throughout 2021. Topics related to money...
Read More

3 Best Bankruptcy Tips of 2021

Learning how to manage your money is an ongoing process. Even the smartest money minds out there can always learn...
Read More

How to Prevent Bankruptcy from Ruining Your Holiday Season: Why a Spending Spree Before Bankruptcy Could Hurt You in the New Year

Should you go on a spending spree before bankruptcy to celebrate the holiday season? The answer might surprise you. The...
Read More

How to Avoid Holiday Overspending

The holidays are upon us and, as usual, many people are trying to keep their spending within a budget. As...
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