Do I need to file bankruptcy and can they touch my soc ail security benefits
Question Details: My mom is 67 years old and is collecting social security disability benefits in New York City if she files bankruptcy or don't pay my credit cards from past years can they touch her benefits. I - Does she have to spend the money that she doesn't have to file bankruptcy? She only receives about 1,000.00 per month to rent, electric, gas bills and food plus pay medical co-pays. The money she gets doesn’t even cover her monthly bills. What can she do? She is always worrying about paying her bills that it makes her feel sick.
Social security income and benefits are protected in bankruptcy. She doesn't have to spend any money she doesn't have, and often a bankruptcy attorney will give you a discounted rate on a bankruptcy for an elderly client.
If the creditors sue her, they may get judgements, but it is possible these may not be collected on, unless she has valuable assets they could try and reach.
First, social security benefits are protected. Howevr, it can lose protection if co-mingled with other non protected funds in a bank account.
$2,500 cash is exempt in any bankruptcy filing in NY.
Her income certainly qualifies her for bankruptcy. Presuming that she does not have any unprotected assets, such as large equity in a home, she may consider bankruptcy a an alternative to worrying about her credit cards.
Have your mother call my office for a free initial consultation at 212-239-3800
David B. Shaev
The Empire State Building
