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Is social security considered part of disposible income in bankruptcy?
I had to file chapter 13 in Aug. 2006 due to a disability. The pension from my previous job was used for income and to figure my monthly payments. I have now been awarded social security benefits and received 10 months back pay. I have heard that the bankruptcy trustee cannot attach my back pay or my monthly benefit payment and my monthly payment to the trustee will remain the same. Does anyone know if this is true?
Yes, it is. Under the Federal law your social security benefits are exempt from any levy, garnishment, assignment from creditors and from the trustee in bankruptcy. However, once the back pay is deposited into a bank account, it might be an entirely different story in your state. Call the attorney who did the bankruptcy for you and ask him.
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M.P. Reeve, appellant vs. North Carolina Land & Timber Company, J.E. Rankin, trustee in bankruptcy for North Carolina Land & Timber Company, and T.T. … for the Eastern District of Tennessee record … |
