Certain Federal programs, like SSI or SSDI, may provide aid if you are elderly, disabled, or blind and have a low income. You are able to have a fairly routine life thanks to these advantages. You might not be able to take care of yourself and get food, shelter, clothing, and other basics without these SSDI benefits.
Under most circumstances, therefore, if you have severe debt and apply for bankruptcy for debt relief, your SSDI benefits normally are not affected. Keep reading to learn more. If you have filed for SSDI and been denied, contact PLBH at (800) 435-7542 to learn how we can help with the appeal process.
There Might Be Limits to How You Can Use Your SSDI Compensation During a Bankruptcy
The government and the state know that there are various methods that your disability claims must be substantiated before getting your SSDI compensation. In order to prevent you from misusing “the system” after getting the money, there are additional requirements for how the benefits must be used.
Exemption procedures for Chapter 7 bankruptcy filings are subject to a plethora of regulations. Additionally, as each submission is different, these exemptions will be handled accordingly. It might be difficult to determine exactly what you can keep and what you might have to surrender or sell when filing for Chapter 7 bankruptcy.
Realizing that SSDI claims are usually challenging and complicated from a legal standpoint in bankruptcy situations is crucial. As a result, it’s always sage and judicious to engage with a knowledgeable, experienced SSDI attorney on all the details (financial and otherwise) of your case. Do this before filing bankruptcy to protect your valued and necessary SSDI benefits.
How Would a Chapter 7 or Chapter 13 Bankruptcy Impact My SSDI Payments?
Almost all of your property is regarded as bankruptcy estate property when you file for Chapter 7 bankruptcy. So, the bankruptcy trustee may seize and sell your nonexempt assets in order to pay off your creditors. State and federal bankruptcy exemptions, however, typically safeguard your SSDI benefits in SSDI-related lawsuits.
When filing for Chapter 13 bankruptcy, you normally maintain all of your property but are compelled to pay a portion of your debts using a repayment plan.
The bankruptcy trustee does not sell your nonexempt assets to satisfy your creditors. Yet, there are tough conditions. You can be required to utilize some of your SSDI payments to pay toward your repayment plan if the court rules that a portion of your SSDI benefits is not exempt.
Both types of bankruptcy have additional requirements. It is therefore a complex legal matter, and talking about your individual financial situation with a SSDI lawyer will give you crucial information that will assist you safeguard your financial future. You can contact PLBH at (800) 435-7542 now to get started.