Social Security Benefits Protected In Bankruptcy


Should your creditors be able to seize your Social Security payments to satisfy debts in a chapter 13 bankruptcy? The National Association of Consumer Bankruptcy Attorneys says no, and an appeals court recently agreed. From their press release: In re Welsh, the Ninth Circuit Court of Appeals shielded Social Security benefits from creditors. NACBA, represented by the National Consumer Bankruptcy Rights Center, had filed an amicus curiae brief asking the court to honor the clear directive of Congress that these benefits, vital to so many elderly and disabled individuals, be protected from creditors and chapter 13 trustees eager to squeeze every last cent out of debtors who have suffered financial hardships.