Dic And Bankruptcy?

[teejay53]

hi all;

as i have had no income since oct 2009 (leg amputated & lost my husband) and have fallen way behind in all my debts, i have a question i would really like your opinions on.

i began receiving social security disability and dic lately and may have to file bankruptcy, will bankruptcy take away my benefits?

i am very worried about this and would really appreciate your opinion.

thank you

[john999]

No, bankrupcy won't take away your benefits. Each state is different, but this is something you should talk over with a bankrupcy lawyer in your state. They don't take your home and they don't attatch your income. They can go after some other assests, but you really need to talk to a lawyer. Bankrupcy stays on your record for ten years. You can still get credit.

[JR Reihs]

What John said......nothing to worry about, you will not even need to fill out a means test as your income is not earned, just make sure your lawyer is well versed in BK.

[teejay53]

thank you all for your insite.

i was visiting with someone at the veterans center today and the guy told me a creditor can attach or even freeze my my dic and social security disability money that is in the bank every month. i would really appreciate your advise on this and how would i avoid this.

this would have me on the street because i have no back up money for rent, etc.

again thank you for your help.

teejay

[john999]

I think the only kind of creditor that can go after DIC or SSD would be the feds for overpayments or IRS debt. The creditor may threaten this to scare you into paying, but they can't do it. People you owe money to can put liens on your property. If I owed a lot of money and could not pay I would consult a bankrupcy lawyer to get the facts before I did anything. Here is a good one: There are people living in their houses who have not paid mortgage payment in years. Some people get evicted from their houses and move back in the next day. The banks have so many defaults they can't keep track or even find the deeds. In Florida there are very strict rules about what a creditor can do as far as calling or harassing you. I don't know of anyone except the feds who can freeze a bank account except if there is some fraud involved which is a police matter.

[Pete53]

VA money is protected as is Social Security to a lesser degree. Every State has its own laws but the question is what does your bank say can be done. I understand that a judgment can sometimes be like that but they have to know your bank and the account.

Lots of people have opinions but most don't know what they are talking about.

I am talking about Texas and the prior comment made by other Members is also good info.

[Chuck75]

No a bankruptcy should not of itself impact DIC or SSDI payments. (unless a "crime" is part of the equation)

However, a problem can arise in that the account the payments go in to might be "frozen" via a court order or other legal action. And it can take an amount of time to get the money "unfrozen".

Banks often err on the side of the bank, not the customer.

What is supposed to happen is that money in the account attributable to DIC and SSDI is not frozen, while money from other unprotected sources is.

In cases involving dependent minors, a court can require payment, and divorce the required payment from income source. (Usually divorces)

As to losing a home, etc. Some loans contain a "confession of judgment" clause. (It may or may not be valid in whole or in part.) This can impact who ends up with the home.

(State law differs from one state to another)

You really need to talk to a lawyer. It seems that the proper timing is needed, and most wait until it's too late to get and properly use legal advice.

hi all;

as i have had no income since oct 2009 (leg amputated & lost my husband) and have fallen way behind in all my debts, i have a question i would really like your opinions on.

i began receiving social security disability and dic lately and may have to file bankruptcy, will bankruptcy take away my benefits?

i am very worried about this and would really appreciate your opinion.

thank you