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West Palm Beach Bankruptcy & Business Attorneys > > Bankruptcy Attorneys > Social Security Benefits and Bankruptcy

Social Security Benefits and Bankruptcy


Many people rely solely on Social Security benefits for their income. However, sometimes these benefits are simply not enough to cover daily living expenses. In these unfortunate circumstances, many people wonder if they need to file for bankruptcy if they only are receiving Social Security benefits. In some cases, certain persons will not need to file for bankruptcy, and in other cases, it may prove beneficial. If you are relying on social security benefits, learn more about how bankruptcy may, or may not, be the right course of action for you.

Understanding Social Security Benefits

Social Security benefits can be garnished for certain reasons including child support, spousal support, victim reparations, federal debts, federal taxes, and federal student loans. There are several different types of Social Security benefits. Supplemental Security Income (SSI) is a federal income supplement program that is designed to help disabled, blind, or aged people who have no other source of income or assets in order to pay for living expenses such as clothing, shelter, and food. It is important to note that these types of benefits are protected from any kind of garnishments even if the creditor could garnish typical Social Security benefits.

Social Security Disability Income (SSDI) is a different type of federal income program that offers disability payments to those under the age of 65 who have disabilities that have been determined to qualify for this program. Additionally, recipients of this type of income must have sufficient work credits within their lifetime in order to receive these types of payments.

Filing for Bankruptcy

Even if you do not owe any child support, spousal support, that’s two federal agencies, student loans, or victim restitution, you may still want to consider filing for bankruptcy under certain circumstances. If you only receive Social Security benefits, and only have medical debt and credit card debt, there is frankly not much a creditor can do to you financially. However, if you have an asset such as a house or vehicle there are situations under which creditors may be able to collect against those under certain circumstances.

These are all important considerations especially if you are attempting to leave your home or other significant property to your children following your death. In other cases, some people simply do not want to deal with any creditors in their golden years. Filing for bankruptcy offers an opportunity for some peace of mind, and peace from creditors, during these years.

Let Us Help You Today

If you are receiving any kind of Social Security benefits and remain unsure if bankruptcy would be a good option for you, please consider visiting with an experienced West Palm Beach bankruptcy attorney at Kelley Kaplan & Eller at 561-264-6850 today for a consultation. We can look over all of your finances and Social Security benefits, and help you make the best financial condition for your unique sets of facts and circumstances.


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