Social Security Benefits and Bankruptcy
Social Security provides financial benefits for many in the United States, however, in some cases, Social Security does not cover enough, and recipients may wonder if they need to file for bankruptcy in order to relieve financial burdens and stress. If you are currently relying on social security benefits, you may have the legal right to still file for bankruptcy. Make sure your legal rights are protected, and learn more about how Social Security benefits can impact a bankruptcy filing.
Understanding Social Security Benefits
Social Security benefits are distributed to persons throughout the United States for many different reasons. There are actually several different types of Social Security benefits. For example, Supplemental Security Income (SSI) provides supplemental income to those who are disabled, blind, or elderly and have no other source of obtaining income to pay for basic living expenses. It is important to note that Supplemental Security Income is protected from any kind of wage garnishment initiated by a creditor that would have the legal right to file a wage garnishment for other types of Social Security benefits.
Additionally, Social Security Disability Income (SSDI) is another type of social security benefit that will provide payments to those who have disabilities but are under the age of 65. There are specific requirements needed in order to qualify for this program, and recipients of Social Security disability income benefits must have worked enough in their lifetime in order to receive sufficient work credits to receive these kinds of payment.
Bankruptcy and Social Security
You may be considering filing for bankruptcy because you have medical debt, or credit card debt. If you only receive Social Security benefits creditors cannot typically take those benefits away from you for these types of consumer debts. However, if you have a physical asset such as a house or a vehicle that could be used as collateral, there are situations where creditors may be able to collect against those pieces of property under specific circumstances. Filing for bankruptcy while you are and Social Security may allow you to have additional financial freedom. However, it is important to remember that certain creditors simply cannot come after your Social Security benefits, and therefore there is no need to file for bankruptcy because there is no danger posed by these creditors. There are several important considerations to think about if you are going to leave your family home or other significant assets to your children following your death. In the circumstances, you may want to visit with an experienced attorney do you ensure that your assets are always protected. Filing for bankruptcy can offer you comfort and peace of mind from the consistent harassment of creditors in your golden years.
Let Us Help You Today
If you are receiving any kind of Social Security benefits, you may be curious if filing for bankruptcy is right for you if you are in a challenging financial situation. Contact experienced Lehighton & Carbon County bankruptcy attorney Adam Weaver at 570-818-4888 or contact our office online for a free consultation today.