If I receive a lump sum check for past SSDI and my Chapter 13 is finished in 6 months, is my lump sum amount safe or will I have to turn in over to the bankruptcy?

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If I receive a lump sum check for past SSDI and my Chapter 13 is finished in 6 months, is my lump sum amount safe or will I have to turn in over to the bankruptcy?

Asked on February 25, 2014 under Bankruptcy Law, Oregon

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Answer: Federal law says your benefits are protected. On several occasions, Congress has made it clear that Social Security benefits are excluded from the financial assets that are used to repay creditors in a bankruptcy case.

Meanwhile, the Social Security Administration (SSA) says it will not honor court orders to hand over anyone's Social Security benefits to a bankruptcy trustee.

You can keep your lump sum amount.


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