Thanks to decreasing employer-sponsored retirement packages (including pensions) and recent turmoil in the stock market (where many Americans invested their retirement savings), retired Americans may be relying more than ever on their Social Security benefits.
But what happens to Social Security in bankruptcy?
In most cases, Social Security funds cannot be seized by creditors, and are yours to keep even if you file bankruptcy. An attorney can explain how federal and state bankruptcy laws may help you secure a debt-free future.
Connect with an attorney today to begin the bankruptcy process. Simply fill out the form below to arrange a free, no-obligation bankruptcy consultation.
As this page will explain, filing for bankruptcy should not jeopardize Social Security payments.
Luckily, federal law protects Social Security benefits from various forms of collection, including:
If you’re considering filing for bankruptcy, your Social Security benefits are probably protected—unless you have certain types of debts. The government reserves the right to withhold Social Security payments for the following debts:
In addition to the support from the federal government, each state has laws that determine what kinds of property can and cannot be collected to satisfy a debt. Many states have protections for Social Security on the books.
To find out more details about your situation and whether or not you might benefit from the protection offered by personal bankruptcy, consider speaking with a bankruptcy lawyer near you today.