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.