If you’re considering filing for bankruptcy, you’re probably wondering whether your disability payments will be protected from the court. This question doesn't come with a simple "yes" or "no" answer. In fact, the specifics of your case will go a long way to determining if your benefits are protected.
The following will affect your case: Type of debt you owe, type of disability benefits you receive and what type of bankruptcy you file.
To get specific answers, speak with a local bankruptcy attorney during a free case evaluation. Complete the free form on this page to connect with an attorney today.
The answer to this question depends on a couple of factors, including where you live in the country and what type of personal bankruptcy you file for. Personal bankruptcy laws provide two main options, known as chapters, and these will greatly influence how your case proceeds:
It is possible that your disability payments are enough to cover your Chapter 13 plan. However, Chapter 7 is the most common type of personal bankruptcy for all filers. If you choose Chapter 7 you'll want to get complete answers as to how the laws in your state will affect your disability benefits, and any personal medical equipment you own. These are often considered assets, and protected by most states.
If you’re receiving disability benefits because you’re unable to work, there’s a chance that Chapter 7 bankruptcy may better suit your needs than Chapter 13. Here’s a look at what might happen in a typical Chapter 7 bankruptcy filing:
If you want to find out whether or not your disability payments will be protected if you file for bankruptcy, take the first step toward finding out: Connect with a bankruptcy lawyer practicing near you when you complete the form on this page. Get your answers during a free case evaluation.
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.