A few years ago, when I realized that I couldn't pay my mortgage anymore, I knew that I needed to do something to correct my finances. It seemed like I just couldn't catch a break, and after losing my job, I knew that I was in trouble. I started looking for new work, but I knew that I needed to fix my credit somehow. I was at the end of my rope, until a friend talked with me about the possibility of declaring bankruptcy. She explained that it helped her to start over. I met with a bankruptcy attorney who was incredible to work with, and I was amazed at how much it helped my situation. Check out this blog to learn how working with a bankruptcy professional could help you.
If you file for chapter 13 bankruptcy, you will be subject to a payment plan where some of your future income will go towards repaying your debts each month. Many people have questions about how to navigate chapter 13 bankruptcy if they have social security disability income. In some cases, bankrupt individuals have been successful at arguing to keep their social security disability income. Here are some guidelines for keeping the maximum amount of your income with social security disability earnings.
Deciding How to Disclose Social Security Income
Your bankruptcy trustee will ask you to fill out some paperwork that indicates your monthly income for the past six months. Some people leave their social security disability income off of the papers, since it can be argued that this is not true income. However, most lawyers will advocate that you include your social security disability information in order to be completely honest with your bankruptcy trustee and avoid provoking a deeper investigation. The situation can be even more complicated if you are on short term disability, since it may not be completely classified as current or projected income. Speak with a social security disability attorney to figure out which option suits your case.
Finding the Right Lawyer
If you want to successfully argue to keep your social security earnings, you will need to find a lawyer who can navigate the laws of your local bankruptcy court. There are a few types of lawyers who can help you navigate this case. You would get some helpful advice from either a bankruptcy attorney or a social security disability attorney, but the best option is to choose a law firm that has experience dealing with both sets of laws.
Making a Case for Keeping Your Earnings
There are a few ways to get around losing your disability income to payments for chapter 13 bankruptcy. Some cases are based around the definition of current monthly income in the Bankruptcy Code. You also may be able to challenge the case based on the Social Security Act's assertion that your social security payments should not be garnished by chapter 13 claims. Either way, you'll need to have a qualified social security disability lawyer to navigate each legal clause for you.
It can be frustrating to lose disability income based on a bankruptcy, but it's not inevitable for this to happen. Speak with an experienced lawyer to see what you can do about this difficult situation.
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