How does collecting social security benefits affect filng a Chapter 7?

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How does collecting social security benefits affect filng a Chapter 7?

My lawyer is days from filing my Chapter 7 and today I received a phone call from social security stating that my ex-husband’s social security benefits were approved and I can now apply for our children. How will receiving SS benefits affect my Chapter 7?

Asked on July 22, 2010 under Bankruptcy Law, Illinois

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It should not affect your filing at all.  In a Chapter 7, a debtor must complete a "means test".  The bankruptcy "means test" determines whether your income is low enough for you to file Chapter 7 bankruptcy. It's a formula designed to keep filers with higher incomes from filing for Chapter 7 bankruptcy.  However, Social security payments are excluded from the calculation of income for purposes of the means test.


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