What to do if I’ve been unemployed for almost 3 years and was going to file for bankruptcy and have now been aproved for disability and Medicare?

I’m going to receive a check from the Treasury Department for a good amount of money. Am I still allowed to file?

Asked on February 24, 2013 under Bankruptcy Law, Nevada


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

I am assuming you mean either SSI or SSDI disability payments here, correct?  Generally speaking, bankruptcy law and social security law protects those funds, but SSI more than SSDI.  And lump sum payments can pose a problem depending on your state law.  If you receive the lump sum before you file then you will have to trace the money and show that it was a Social Security disability payment to protect it from the Chapter 7 trustee.  Good luck to you.

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