Neighbor News
Social Security and Bankruptcy
Many retired people have sizeable debt burdens, and no remaining work years to pay it down.
Social Security Benefits
Everyone would agree that a guaranteed monthly income is nice to have. Social Security income disability benefits are designed to assist people with their basic care and maintenance such as food, clothing, and shelter. By the age of 62, many people have paid into the system for over 40 years and are ready to cash in. There are far more benefits to waiting longer into (FRA), full retirement age of 65-70, if you can afford it. Evaluate your decision based on how much you have built into savings, additional sources of income, how long you expect to live, etc. Keep in mind that your cost of living allowances, (COLA), are increased based on how soon you started collecting.
I’ve been collecting social security, now I need to file bankruptcy
Your attorney will understand that retired debtors have a fixed income. They will also acknowledge that social security benefits are often necessary to keep in-tact so that the retiree can continue supporting themselves and their families. There are both Social Security and bankruptcy laws, which include state and federal exemptions, to protect social security benefits.
Lump sums for disability payments under social security
If lump sums are deposited for disability payments, they must be traced back to where they came from. If the deposited amounts exceed that which is needed for your basic living expenses, a Chapter 7 trustee may be able to take a portion of that money. Indeed there are bankruptcy and Social Security laws to protect you, but they can become complicated very quickly. The complications are another good reason to contact an experienced bankruptcy attorney who understands both state and federal laws pertaining to both social security and bankruptcy.
Overview of Future interests that may need to be disclosed in a bankruptcy petition:
Stock Options Trust funds Tax refunds Pensions 401K Plans Retirement plans
Lawsuits you have against other individuals Assets you expect to inherit when someone dies
Debt Advisors. Bankruptcy attorneys you can trust. Speak with a trusted bankruptcy attorney
Making the call for a consultation is often the most difficult step, but a big one when it comes to securing your future. Financial freedom! The bankruptcy process is as little as $100 to get started. A payment plan for the balance of your attorneys’ fees and filing fees will be agreed upon upfront. Learn more about Chapter 7 and Chapter 13 bankruptcy online, or call toll-free: 888-660-4513. You can trust Debt Advisors.