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State of Texas My sister and brother-in-law filed bankruptcy

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State of Texas: My...
State of Texas: My sister and brother-in-law filed bankruptcy a few years ago. The Ch. 7 is open for potential asset recovery due to lawuit/auto wreck in which my sister was seriously injured. In the meantime, she filed for disability and received backpay of a little over $13,000. Are these funds exempt from the Bankruptcy, Ch. 7?
Submitted: 8 years ago.Category: Bankruptcy Law
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Answered in 2 hours by:
1/6/2009
Bankruptcy Lawyer: JoeLawyer, Attorney replied 8 years ago
JoeLawyer
JoeLawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 767
Experience: Attorney in the practice of Bankruptcy Law since 1996
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HiCustomer

I assume you are talking about Social Security Disability and not some private disability insurance...

Social Security Disability is not considered an asset of the Bankruptcy Estate since it is exempt.

You can see what property is safe in Texas by going here, which also includes the federal supplemental exemptions, which you can view here. As you can see on the federal supplemental exemptions, Social Security is safe from being taken by the Bankruptcy Court.

I hope this helps and a positive feedback is always appreciated if this was useful to you.

LEGAL NOTICE: I am only licensed to practice law in certain state(s) and I cannot give legal advice to someone who does not reside in a state in which I am licensed, nor shall anything I say in the above answer or elsewhere on this site be deemed legal advice, even to someone who resides in a state in which I am licensed. Fees I receive for answering questions are paid for information, not for legal advice. This forum is designed to provide general information only, and information herein is not warranted to be correct or applicable in any way since laws may have been misinterpreted herein, since laws change from time to time, and since the impact of those laws on any particular situation varies. The information presented in this site shall not be construed to be formal legal advice nor the formation of an attorney-client relationship. Persons accessing this response are encouraged to seek independent legal counsel in their jurisdiction for guidance regarding their individual circumstances. Do not take any action or inaction based on information presented herein since it is informational and may not be accurate or applicable to you; it merely attempts to give you a basis of knowledge to help you formulate questions to ask a legal or other professional in a face-to-face meeting in your jurisdiction. Joseph Ross does not hold himself out to be a specialist or expert in any area, regardless of assertions made by any third party, and any implication of being an expert or specialist herein is made in error. I hope the information presented above is useful to you. Answer above (c) by Joseph Ross, all rights reserved.

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