Is my Social Security protected if I file for bankruptcy?

Yes, you can keep both the right to receive social security payments in the future, and any social security you have on deposit in a bank account throughout the bankruptcy. In fact, Social Security money is totally protected from creditors both inside of the bankruptcy process, and outside of it.

The only way that creditors can get to Social Security money is if you can't prove that the money is in fact Social Security. This happens most often when the Social Security payment is deposited in a bank account along with money from other sources. If you commingle other money with your Social Security in the same bank account, then how can you prove whether the money in the account is Social Security or a different kind of money? For example, if you have a paycheck direct deposited into the same account as your Social Security money, and then pay some bills out of the account, which type of money is left over? The creditor will claim that the social security went to pay the bills, so that they can take all of the money in the account, but you want to claim that you used the paycheck to pay the bills, so that all of the money in the account is Social Security and protected.

How do you make sure your Social Security is safe? Have a separate bank account where only the Social Security money is deposited. That way you can show that all deposits were Social Security, and therefore creditors can't take them.

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