Social Security
If you are receiving social security and are considering filing bankruptcy, you may be asking, can I keep my social security if I file bankruptcy? Filing bankruptcy, assuming done correctly and with the help of an experienced attorney, will not protect your right to receive (and keep receiving) social security income when you file in order to get out of debt San Diego and get a fresh start.
Keep Social Security In Bankruptcy San Diego
Federal law prohibits government from discriminating against you because you sought debt relief under the protection of the federal laws. Because of this anti-discrimination protection, the Federal Government cannot stop paying you social security benefits, or ever deny you social security benefits in the future, because you filed for protection under Chapter 7 or Chapter 13 bankruptcy. Therefore, you can generally keep your social security in bankruptcy San Diego, subject to the government's rights to garnish or take part of your social security to repay debts that you owe to the government.
Government Debts
Certain debts owed to the government, such as student loans and back taxes, cannot be eliminated by a discharge. Most experienced San Diego bankruptcy lawyers will tell you from experience that student loans, which are a form of government debt, are almost never discharged. The judges in San Diego follow the Brunner Test, which requires an extreme case of physical or mental hardship in order to discharge student loans.
Back taxes, also a form of government debt, can be discharged, but only in limited circumstances where the taxes are older taxes and certain other legal requirements are met. In order to discharge taxes in bankruptcy, you have to wait a statutory period from the day the taxes were first due, and you have to actually file your taxes and wait a statutory period before you can file your case. In situations where your lawyer needs to accelerate your filing, for example, to stop foreclosure, or to stop a lawsuit or wage garnishment, then your back taxes may not be discharged in your case.
Garnishment for Government Debts
If you owe certain government debts, such as student loans or back taxes, and they are not discharged, then the Federal Government can garnish your wages to collect the government debt. For example, the Federal Government can to a garnishment of social security benefits that you are to receive in the future in order to repay a student loan or repay back taxes that were not discharged.
An experienced lawyer can help you come up with a plan that will address your back taxes and student loans, so that you can receive the maximum benefit from your bankruptcy filing and truly get out of debt and get a fresh financial start.
Free Consultation
Contact us today to set up a free consultation with a San Diego bankruptcy lawyer and learn how to keep and protect your social security income when you file bankruptcy San Diego. Let an experienced lawyer help you obtain serious debt relief and keep your social security income at the same time.