Will social security disability be taken away in a bankruptcy? 10 Answers as of February 23, 2011

My friend should have her final Social Security Disability hearing in about 12 mo., and if approved will get about $12k lump sum + monthly disability. She is unable to work for 5 yrs; she and her dh have $50k in cc debt (not counting mortgage). She can't divorce him until SS disability money comes. Will that be taken if they declare bankruptcy? IMHO, most of her health issues would cease if she was out of that horrible marriage, but she can't leave yet - no job, no money and no health insurance if she left. Thank you for your assistance.

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William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
No, they will not be taken away.
Answer Applies to: Tennessee
Replied: 2/23/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
The social security benefits should be exempt in a bankruptcy. She needs to be careful about commingling it with other funds.
Answer Applies to: South Dakota
Replied: 2/23/2011
Gresham Family & Bankruptcy Law
Gresham Family & Bankruptcy Law | Lillian Suelzle Watson
While social security benefits is usually exempt in bankruptcy, it may be considered a marital asset. Then there is a specific limit on the amount of the exemption. It will be important to consider the various debts and who is responsible for these debts in the divorce. Does the divorce come first or after a bankruptcy? Your friend should see a lawyer experienced in both with a domestic relations and a bankruptcy background, as there are too many questions to be answered in a brief e-mail. The question is in the details.
Answer Applies to: Oregon
Replied: 2/23/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
Social Security payments of all kinds are exempt from bankruptcy.
Answer Applies to: California
Replied: 2/23/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
No. Social security is exempt.
Answer Applies to: Alabama
Replied: 2/23/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Social Security Disability is not taken away in BK.
    Answer Applies to: California
    Replied: 2/23/2011
    Law Office of Larry Webb
    Law Office of Larry Webb | Larry Webb
    No, it will not be.
    Answer Applies to: California
    Replied: 2/23/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    There is an exemption for disability benefits that would exempt all the funds she is likely to get from Social Security. She should keep those funds in a separate account. To do things properly she should have a lawyer represent her in the bankruptcy case to make sure things are done properly.
    Answer Applies to: California
    Replied: 2/23/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    No, social security funds are exempt. She will get to keep them. If she them automatically deposited into her checking account that would be best.
    Answer Applies to: California
    Replied: 2/23/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    No, bankruptcy will not affect Social Security Benefits.
    Answer Applies to: California
    Replied: 2/23/2011
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