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  1. #1
    Join Date
    Jul 2005
    Location
    Texas
    Posts
    4

    Default Social Security Disability and Bankruptcy

    I have received SS Disability and the lumpsum backpay (for periods for which I am entitled to the disability, but because of the slow system speed) has been received.

    I am also considering filing bankruptcy because my ex-husband continues to sue me and is filing for enforcement of the divorce decree and contempt of court (including a request that I be jailed), because I did not comply with the divorce decree because I had no money and no legal representation. Apparently bankruptcy is the only way out of a probable judgment on this case and my question is:

    Is the lumpsum disability check for previous periods where I should have been paid disability an exempt item in Chapter 7 Bankruptcy?

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Filing Bankruptcy

    You should consult a bankruptcy lawyer, to see if bankruptcy will serve your needs and if the debts from your divorce are dischargeable.

    As explained in this case, in a Chapter 7 Bankruptcy, you should be able to shield a lump sum payment for Social Security Disability benefits from your creditors. Your bankruptcy lawyer can make sure that proper procedure is followed.

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