Does Bankruptcy Affect My Disability Benefits?

Deciding to file for bankruptcy can be a difficult decision and comes with a lot of considerations. One important question for people receiving disability benefits is whether or not their benefits will be affected if they do decide to file for bankruptcy. The answer, in most cases, will depend on the type of benefit being received.

Generally, disability benefits from the government are not counted as assets when filing for bankruptcy and are generally allowed to remain exempt from any debt repayment obligations after filing. This includes Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), Veterans’ Benefits, Railroad Retirement Board payments, and Workers’ Compensation benefits. However, it is important to note that private disability insurance policies may be affected by the process of declaring bankruptcy.

The Law Offices of Omar Zambrano has helped thousands of people and businesses on the past to get out of debt and start over.

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