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

Tampa Bankruptcy Law Blog

How Does Claiming Bankruptcy in Florida Affect Your Children?

Claiming Bankruptcy in Florida Understanding how claiming bankruptcy in Florida affects your children is an important part of determining whether...
Read More

Claiming Bankruptcy in Florida: What Happens When You File for Bankruptcy and Your Spouse Does Not?

Claiming Bankruptcy in Florida You already know how much the things you do affect your spouse when you are married....
Read More

Should You Pay Back What You Owe Loved Ones Before You File for Bankruptcy?

Florida Bankruptcy Laws It’s common for people who are struggling financially to turn to their friends and family for help....
Read More

Bankruptcy and Family Law: Does Filing Affect the Child Support I Pay or Receive?

Bankruptcy and Family Law If you’re like many people, the well-being of your children is your most important priority. Struggling...
Read More

5 Tips for Overcoming the Emotional Toll of Bankruptcy

Florida Bankruptcy Attorney Getting through the bankruptcy process is about more than just improving your finances. Working with a Florida...
Read More

Bankruptcy and Divorce: The Far-from-Perfect Storm

Bankruptcy and Family Law Bankruptcy and divorce separately are two of the most stressful events you can experience in your...
Read More

Does the Pandemic Have You in a Holding Pattern? Here’s How to Know When to File for COVID Bankruptcy

COVID Bankruptcy If you’re struggling to make ends meet and you feel as if your life is on hold because...
Read More

Will Your Favorite Retailer File for Business Bankruptcy in 2021?

Business Bankruptcy 2020 was a tumultuous year and many of the financial challenges caused by the pandemic are expected to...
Read More

Boosted and Extended Benefits Keeping Unemployed Afloat – But For How Long?

Unemployment Benefits Were you one of the millions of people who ended up out of a job and using unemployment...
Read More

Should Bankruptcy Laws Be Adjusted Because of COVID-19?

Bankruptcy Laws The COVID-19 pandemic brought a lot of changes throughout 2020 and many are expected to continue into 2021...
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 RG Seal

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