Bankruptcy Articles

 Social Security Income and Bankruptcy

If you are receiving social security income, and if you need to file for bankruptcy, then contact the New Jersey Bankruptcy Center. We can answer all of your questions about bankruptcy and social security income at a free bankruptcy consultation. Moreover, many New Jersey-ites who receive social security income,  and who need to file for bankruptcy are often scared that their creditors may be able to garnish their income.

Social security income is considered exempt in bankruptcy. In simpler terms, your creditors cannot take your social security income benefits in a bankruptcy. Since social security benefits are exempt under 11 U.S.C. 522 (d)(10)(a) no creditor and even the bankruptcy trustee can take your benefits. Federal law provides that social security benefits are exempt from garnishment, levies, or assignments by most creditors, and it is likewise exempt from the trustee in a bankruptcy case .

Now even though Federal Law and New Jersey law allows an exemption of social security income in bankruptcy. There are instances where certain kinds of taxes, student loans, social security over payments, or debts due to Federal agencies may attach to social security income outside of bankruptcy. These types of attachments may be in effect when someone files for bankruptcy or may even be the motivation behind filing for bankruptcy. In these cases the automatic stay of bankruptcy will temporarily stop such action but after the case is filed things can change.

Generally almost all income payments you may receive under the Social Security Act are exempt in a bankruptcy proceeding. These also includes social security retirement income, SSI or supplemental security income, SSD or social security disability insurance benefits. Many New Jersey-ites who receive social security not only live on a fixed income, but they often have no other source of income to live on. Filing for bankruptcy can provide many benefits to those on social security and who are in desperate need of debt relief. If you are facing financial problems such as foreclosure, repossession, or loss of property, we may be able to help. Bankruptcy was designed to help honest debtor’s who need debt relief and a fresh start. If you are receiving social security income and if you need to file for bankruptcy, then contact the New Jersey Bankruptcy Center. We would like to help you wipe out your debt and get a fresh start. We can explain how your social security income will be treated in a bankruptcy case. There is no charge for your first consultation. Therefore, don’t delay.

Posted under Bankruptcy Articles
Tagged as