Social Security protected with bankruptcy

Is Social Security is protected by bankruptcy?

Yes.

The only way that creditors can get to Social Security money is if you can’t prove that the money is in fact Social Security.

This happens most often when the Social Security payment is deposited in a bank account along with money from other sources.

Throughout your bankruptcy, you can keep:

The right to receive social security payments in the future
Any social security you have on deposit in a bank account throughout your bankruptcy

In fact, Social Security money is totally protected from creditors both inside of the Chapter 7 bankruptcy and Chapter 13 bankruptcy process, and outside of it.

How do you prove that your money is Social Security?

If you commingle other money with your Social Security in the same bank account, then how can you prove whether the money in the account is Social Security or a different kind of money?

For example:

If you have a paycheck direct deposited into the same account as your Social Security money, and then pay some bills out of the account, which type of money is left over?

The creditor will claim that the social security money went to pay the bills, so that they can take all of the money in the account, but you want to claim that you used the paycheck to pay the bills, so that all of the money in the account is Social Security and protected.