{"id":56,"date":"2011-11-04T22:39:53","date_gmt":"2011-11-04T22:39:53","guid":{"rendered":"http:\/\/www.fremont-bankruptcy-attorney.com\/blog\/?p=56"},"modified":"2020-09-04T19:23:49","modified_gmt":"2020-09-04T19:23:49","slug":"im-about-to-receive-a-lump-sum-social-security-payment-and-does-that-affect-my-bankruptcy-case-your-fremont-ca-bankruptcy-lawyer-explains","status":"publish","type":"post","link":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/2011\/im-about-to-receive-a-lump-sum-social-security-payment-and-does-that-affect-my-bankruptcy-case-your-fremont-ca-bankruptcy-lawyer-explains\/","title":{"rendered":"I\u2019m About to Receive a Lump Sum Social Security Payment and Does that Affect My Bankruptcy Case?"},"content":{"rendered":"

By Ryan C. Wood<\/a><\/p>\n

A number of issues that come up in the real world are not good in once in the bankruptcy world.\u00a0 Receiving a lump sum social security payment is one of them.\u00a0 There are many people that are about to file for bankruptcy\u00a0 or have already filed for bankruptcy and realize that they will be receiving a lump sum payment from the Social Security Administration for payment owed to them for prior months (sometimes years).\u00a0 At times it is not clear when the funds will be received or if they will be received at all.\u00a0 Receiving a lump sum payment is normally a cause for celebration since you will now receive what is owed to you by the government.\u00a0 However, the most prevalent fear out there is that because they are about to file for bankruptcy, or have already filed for bankruptcy, they may lose some or all of those funds.\u00a0 Well, we are here to help you settle those fears.<\/p>\n

Social Security benefits are exempted from the bankruptcy estate.\u00a0 What is a bankruptcy estate?\u00a0 A bankruptcy estate is created when you file for bankruptcy protection.\u00a0 The bankruptcy estate essentially includes all assets that you have in your name, whether it is real or personal property, tangible or intangible goods.\u00a0 We use exemptions to protect those assets.\u00a0 Since Social Security benefits are exempted from the bankruptcy estate, it means that these benefits are protected against creditor collection, including levies, garnishment, or any other legal process.<\/p>\n

If you received your lump sum social security payment before your bankruptcy case is filed, be sure to place those funds in a separate account that is not commingled with deposits from other sources.\u00a0 This way, there is no argument that the account consists of only the social security payment, and all the funds in the bank account can be protected.\u00a0 If the lump sum payments are commingled with monies from other sources, it becomes harder to trace the funds.\u00a0 If you have your paycheck deposited in the bank account along with the lump sum payment, how do you prove that the $1500 you spent on rent came from the lump sum social security payment and not your paycheck?\u00a0 The harder it is to prove that the funds came from the social security payment, the harder it is to protect.<\/p>\n

If you receive your lump sum social security payments after your bankruptcy case is already filed, you need to make sure the payments are listed in Schedule B of your bankruptcy petition.\u00a0 If it is not, you can file an Amended Schedule B to list the lump sum payment and exempt the asset on Schedule C of your bankruptcy petition.\u00a0 As previously indicated, remember to place the lump sum payment in an account that is not commingled with other funds to ensure maximum protection.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Ryan C. Wood A number of issues that come up in the real world are not good in once in the bankruptcy world.\u00a0 Receiving a lump sum social security payment is one of them.\u00a0 There are many people that are about to file for bankruptcy\u00a0 or have already filed for bankruptcy and realize that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/posts\/56"}],"collection":[{"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/comments?post=56"}],"version-history":[{"count":8,"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/posts\/56\/revisions"}],"predecessor-version":[{"id":1057,"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/posts\/56\/revisions\/1057"}],"wp:attachment":[{"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/media?parent=56"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/categories?post=56"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fremont-bankruptcy-attorney.com\/blog\/wp-json\/wp\/v2\/tags?post=56"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}