Can SSDI lump sum be taken during bankruptcy? 6 Answers as of May 17, 2011

I am currently in a chapter 13. I am going to convert to a 7 as my income will be lowered this month from 3200 to 2020.I was on Long-term disability and now on SSDI. I also received the lump sum from SSDI. I know that the monthly SSDI is exempt. I am deeply concerned as to the ability to keep this lump sum. It seems to be a state-by-state bankruptcy law regarding the ability to keep the lump sum. I am in need of how to keep this money. Is it timing of the conversion to the Chapter 7? What other important factors are taken into consideration when deciding to left me keep the money? What questions will I have to answer in regards to this money? I hope I can gather some essential information on this issue. As my time for filing a conversion draws near. Thanks

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Dearbonn Law Offices
Dearbonn Law Offices | Ajibola Oluyemisi Oladapo
It depends on the amount. In some states there is no exemption limit on SSDI in some states there is a limit. It depends on the limit on the exemption, but you can definitely exempt it. It s a disability payment and is eligible for an exemption.
Answer Applies to: Washington
Replied: 5/17/2011
Jackson White, PC
Jackson White, PC | Spencer Hale
You need to speak personally with an attorney. Typically, Social Security Disability Income is exempt from creditors, and therefore the bankruptcy, but in a chapter 13 the situation could be a little different because disposable income is the key in a chapter 13. Since you are considering converting to a chapter 7, you should talk to an attorney to discuss all of your options.
Answer Applies to: Arizona
Replied: 5/16/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
They can not take you SSDI, even if it comes in a lump sum.
Answer Applies to: California
Replied: 5/16/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
SSDI is protected by federal law, not state law, 100% exempt per 42 USC 407.
Answer Applies to: Indiana
Replied: 5/16/2011
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
You need to consult with your attorney on this. You do have an attorney, don't you?
Answer Applies to: California
Replied: 5/16/2011
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