For many people, filing for bankruptcy is an incredibly stressful process. As such, those who file often have various questions regarding the future of their home and other assets. One of the most common questions our firm receives is, “will filing for bankruptcy take away my Social Security?” This is a very good question, as Social Security, oftentimes, is a person’s only source of income. Please continue reading and speak with our Rockland County bankruptcy attorney to learn more about what happens when you file for bankruptcy and whether your Social Security is safe. Here are some of the questions you may have:
What happens when I file for bankruptcy?
If you have debts piling up that you simply cannot pay, you are most likely considering filing for bankruptcy. Essentially, the goal of bankruptcy is to give those who are behind on payments the fresh start they require to move on with their lives. When you file Chapter 7 bankruptcy, as long as you pass the means test, you should wipe out all or most of your debt, in exchange for some of your property. On the other hand, when you file Chapter 13 bankruptcy, you essentially work out a 3-or-5-year repayment plan, wherein you will restructure your assets and pay off your debt.
Will filing for bankruptcy affect my Social Security income?
Fortunately, while many assets are not exempt from bankruptcy, Social Security is 100% exempt, meaning that you can still rely on your regular Social Security checks being completely untouched. This is a federal law, so no matter where you live in the United States, this is true. That being said, you should be very careful with how you handle your Social Security, for if Social Security is commingled with other assets, you may put it at risk of being non-exempt from bankruptcy. This is why it is always best practice to simply have a separate Social Security account that is solely used for Social Security funds. This will help avoid any potential commingling and will ensure that your Social Security checks are safe. If you have any additional questions or you believe you are ready to file for bankruptcy, please do not hesitate to speak with our knowledgeable Rockland County bankruptcy attorney today. Our firm is here to help you in any way we can.
Contact our experienced Rockland County, New York firm
The Law Offices of Allen A. Kolber, Esq. effectively represents clients facing Bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.