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My daughter is on disability. She filed bankruptcy 3 years

Resolved Question:

My daughter is on disability. She filed bankruptcy 3 years ago. She has 1/2 interest in her home. She can't afford to keep the old house repaired. If she sells (and makes a profit on the sale), will she lose all her disability/low income benefits? She hopes to eventually use the profits to buy a condo or someting more affordable.
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 3 years ago.

Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.

 

She will have to report her profits, and it may cause a temporary interruption of her benefits for the week/month that she receives the money, but the disability payments should resume shortly thereafter.

 

I would suggest that she contact her case worker, discuss the situation and ask for help with managing this the best way possible.

Customer: replied 3 years ago.
thanks--what about food stamps, low income help with fuel, etc.?
Expert:  Roger replied 3 years ago.
All of that will likely temporarily stop in lieu of the income she receives.
Customer: replied 3 years ago.
What is "Temporarily"? Will benefits stop until she spends the profits? Can the profits be protected somehow? she is hoping to eventually go back to work, but doesn't want to have to use her profits to live on until then.
Expert:  Roger replied 3 years ago.

In order to receive benefits, one must meet certain income requirements, not own more than a certain amount of properety, not have more than a certain amount of money in the bank, etc.

 

I don't know what kind of money she's going to come into (and she probably doesn't either at this point). However, when she does and reports the income, if she's over each agency's requirements for benefits, she will not be eligible until her income level falls below these requirements.

 

That's why it's important for her to contact each agency and see what the protocol or policy is on eligiblilty. Then she'll know what she's facing.

 

There's no way to protect the money - if she receives the income, she has to report it.

Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 27226
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters