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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I want to reconfirm an answer I received yesterday about a

Customer Question

I want to reconfirm an answer I received yesterday about a Chapter 7 bankruptcy and disability BACKPAY from SS. My brother in law and sister filed BR a few years ago. My sister was awarded back pay from SS disability in an approximate amt. of $13,000. Is she allowed to keep this asset? Yesterday's answer did not specifically state BACKPAY could be exempt from the BR Estate.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.

Hello,


Thank you for your question. I am happy to assist you.


Social security is exempt from the bankruptcy estate. Social Security back pay is exempt from the bankruptcy estate.


Additionally, outside of bankruptcy, federal law exempts Social Security benefits from creditors with the exception of taxes, student loans and support.


That means that most creditors cannot garnish your social security benefits outside of bankruptcy as well..


You can read the federal law in full at:
http://www4.law.cornell.edu/uscode/uscode42/usc_sec_42_00000407----000-.html


I hope that the information which I provided was helpful to you.


Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER


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