' Will Filing Bankruptcy Affect My Social Security Disability? - Law Offices of Robert M. Geller, P.A.
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Will Filing Bankruptcy Affect My Social Security Disability?

will filing bankruptcy affect my social security disabilityFor those who receive Social Security Disability (SSD) benefits, filing for bankruptcy can be a tricky situation. The goal of filing for bankruptcy is to get out of debt, but the process can impact your SSD benefits.

Before you take any action, it’s important to understand exactly how filing for bankruptcy will affect your disability payments and what other options you may have available.

Filing for Chapter 7 Bankruptcy

If you are receiving SSD benefits, filing for Chapter 7 bankruptcy will generally not impact your disability payments because those funds are exempted from being taken away as a result of bankruptcy proceedings. This means that even if you file for Chapter 7 bankruptcy and liquidate your assets, the court cannot seize or take away your SSD payments.

However, keep in mind that if you have a bank account where you deposit these funds, the court could seize that account during the liquidation process. To avoid this problem, it’s best to keep your SSD funds in an account separate from any other accounts or assets.

Filing for Chapter 13 Bankruptcy

If you decide to file for Chapter 13 bankruptcy – which sets up a payment plan with creditors over an extended period – your Social Security Disability payments will remain exempt from seizure by the court.

That said, the court may require that you use some of these funds to pay off creditors as part of your repayment plan depending on how much debt you owe and how much income is coming in every month. It’s important to work closely with a lawyer when considering filing for Chapter 13 bankruptcy so they can help ensure that the resulting repayment plan does not leave you unable to meet basic living expenses each month.

In either chapter, filing for bankruptcy will not directly affect Social Security Disability payments. The court exempts those funds from court seizure due to bankruptcy proceedings.

Alternatives to Bankruptcy

Of course, before taking any drastic measures such as filing for bankruptcy, it’s important to consider other potential solutions such as debt consolidation loans or applying for government assistance programs.

These solutions may provide relief without having long-lasting negative impacts on your SSD benefits and credit score. If necessary, speak with a financial advisor. They’ll guide you through the steps necessary and ensure that whatever route you choose is the best available given your unique financial situation.

Wondering if bankruptcy will affect social security disability? For more information or to speak to someone about bankruptcy and your SSD benefits, contact the Law Offices of Robert M. Geller at 813-254-5696 to discuss your situation with an experienced attorney.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Does Business Bankruptcy Affect Personal Credit?

Does Business Bankruptcy Affect Personal Credit? For entrepreneurs and business owners facing financial challenges, the prospect of business bankruptcy can...
Read More

Can I Get an Apartment After Filing for Bankruptcy?

Filing for bankruptcy often feels challenging and overwhelming. It also raises a variety of concerns. One of the most common...
Read More

Are SBA Loans Dischargeable in Bankruptcy?

Navigating the complexities of Small Business Administration (SBA) loans and bankruptcy can be a daunting task for many business owners....
Read More

How to Get Bankruptcy Off of Your Credit Report

Rebuilding financial health after bankruptcy is challenging, but that doesn’t mean filing is worth the effort. One common concern for...
Read More

What Happens When You File for Bankruptcy?

Contemplating bankruptcy is a significant decision that comes with many questions. If you're considering filing for bankruptcy, it's essential to...
Read More

Can I File for Bankruptcy If I Have a Job?

Many people considering bankruptcy are unemployed or know that unemployment is imminent. However, this isn’t always the case. In some...
Read More

Can Bankruptcy Stop Foreclosure?

Many people face the distressing prospect of foreclosure on their homes. If you find yourself in this situation, it's crucial...
Read More

How Much Does It Cost to File Bankruptcy in Florida?

Financial challenges can be overwhelming. For many individuals, bankruptcy becomes a viable option for a fresh start. Many clients are...
Read More

How to Get Out of Debt: Exploring Your Options

Debt is a pervasive issue that affects millions of people worldwide. It is hard to escape debt, especially if you...
Read More

How Will Bankruptcy Affect My Child Support Obligations?

Parenting can be tough, and it's even harder when you're facing financial difficulties. Struggling with debt and bankruptcy can cause...
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

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