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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2901
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I am bankrupt. I have over $1 million of Judgements against

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I am bankrupt. I have over $1 million of Judgements against me from a failed business venture. I will not file bankruptcy.I want to protect my Social Security Benifits.I read Social Security Benefits are safe from creditors... How do I ues this???Is there a way to open a new savings account, ear marked Social Security. Then have SSA deposit my monthly benefit checks there. If I NEVER deposit any other money in this account, (NO comingling), so it is clear it is only my Social Security Benefits, can I exclude this from any adverse creditor? I am open to other options to achieve protection for my Social Security Benefits.Kind Regards
Sam

Hello. To properly protect these funds, you should cash your social security checks and keep the cash on hand. If a creditor obtains judgment, they could put a lien, then you would have to go to the efforts to prove that they are exempt funds. This can take some time, and all the while your funds would be frozen. So, to be safe, cash the checks and stash the money in the mattress! bankruptcy is fairly simple, and can stop the harassment, potential suits etc. and many personal belongings are exempt (depending on your state exemption rules) so it may be worth looking into. most bankruptcy lawyers offer free consults as well. Let me know if you have any other questions. thanks

Customer: replied 4 months ago.
I have been through bankruptcy and have pursued others to recover on judgements. I do not wish to discuss the merits of the Bankruptcy in this question. "So to be safe, cash the check and stash the money in the mattress". Is not safe! And would requiring lies during Suplemental Proceedings and in filling out the disclosure forms to exclude this cash. I will not lie. I do not mind the funds being lien-ed. I want to be able to quickly and absolutly provide the evidence to exempt them to their atty or the judge. Please take another run at an answer.Regards
Sam

Then only deposit social security funds into the account, and it will be exempted by federal law. I was not suggesting to or implying you would lie on court documents.

Customer: replied 4 months ago.
I did not think you were suggesting or implying I lie, just pointing out the issue with cash on hand. What are the do's and don'ts with this methode of protection. For example, I do not think I can deposit money in this account from any other source because the money's would likley loose their identity and become difficult to show which is or is not SS benefits.Regards
Sam

correct. once you comingle, it's not protected. only soc sec benefits should be deposited.

Customer: replied 4 months ago.
What other do's and don'ts are there?
Sam

keep records, and statements, that's about it

Terry L. and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 months ago.
Thank you.
Sam

best of luck to you