Can I file bankruptcy while on SSDI?

Social Security Disability Insurance (SSDI) Benefits In general, both Social Security and bankruptcy laws protect your SSDI benefits if you file for Chapter 7 bankruptcy. If you receive ongoing monthly disability payments from SSDI, you will normally be allowed to keep your payments.

Does SSDI count as income for bankruptcy?

If you choose to file a Chapter 7 bankruptcy and you receive SS or SSDI benefits, these benefits are exempt under bankruptcy law. This means that you will not lose these benefits if you file bankruptcy. Your only income is SS or SSDI benefits; and. You can’t afford to pay all of your bills; and.

Do you have to file bankruptcy if you have disability?

When filing bankruptcy, there are two primary issues with disability. The first issue is whether to include disability benefits in your calculation of income. The second issue is whether the disability benefits are exempt from claims by the bankruptcy trustee. When you file bankruptcy you must calculate income twice.

Can a disabled veteran file a Chapter 7 bankruptcy?

As a result, you would have been barred from filing a Chapter 7 bankruptcy. The passage of the “Honoring American Veterans in Extreme Need Act” (HAVEN Act) allowed this important change so that VA Disability Compensation is now exempt from the means test. As mentioned, there is a second income calculation in all bankruptcies.

Is there an exemption for VA disability in bankruptcy?

While this is a matter to discuss with your bankruptcy attorney, it’s usually best not to use the federal exemptions only because they provide an exemption for VA disability benefits. There is a federal nonbankruptcy exemption that applies to all states. This exemption is not part of the Bankruptcy Code but it does apply to bankruptcies.

Do you have to pass the means test to file bankruptcy?

If your income is greater than the median income in your state, you must pass the full means test to file a Chapter 7 bankruptcy. The means test does not include (or count) social security income.

As a result, you would have been barred from filing a Chapter 7 bankruptcy. The passage of the “Honoring American Veterans in Extreme Need Act” (HAVEN Act) allowed this important change so that VA Disability Compensation is now exempt from the means test. As mentioned, there is a second income calculation in all bankruptcies.

What happens if you don’t file for bankruptcy?

Also, if you don’t file all of the paperwork, the bankruptcy court might dismiss your case, or you might have to file additional papers to correct the paperwork and pay more fees. If you leave a creditor out, that debt might not get discharged. And, if you forget to include an asset, the Chapter 7 trustee might find it and take the property.

If your income is greater than the median income in your state, you must pass the full means test to file a Chapter 7 bankruptcy. The means test does not include (or count) social security income.