ARE MY DISABILITY PAYMENTS GOING TO BE TAKEN AWAY IF I FILE BANKRUPTCY?
"A lot of people have asked me whether a Chapter 13 Bankruptcy is going to jeopardize my Social Security Disability Benefits and the short answer of that is ‘no’. Chapter 13 Bankruptcy requires a debtor to devote their disposable income, but Social Security Disability income does not get included in that calculation.
Now, a lot of people have received a lump sum of back benefits or anticipate receiving a lump sum. What happens with that?
*Well, it's important that number one, you talk to your attorney about where that lump sum should go. Most of the time, you'll have a separate bank account and that's where it should be deposited, but again make sure it does not get co-mingled with any other funds and talk to your attorney.
*Secondly, what do you do with the Social Security lump sum benefit is very important. It's important that you don't, for example, pay off family members who've helped you during the time that you weren't receiving benefits without first discussing that with your attorney.
So, if you have any questions about Social Security Disability Benefits and Chapter 13, feel free to give us a call or fill out the online form."