Financial hardships while dealing with a disability can be overwhelming. Many people rely on disability benefits to meet their needs. If you are receiving disability benefits you may be wondering if your benefits will be affected by filing bankruptcy. The good news is that most disability benefits provided by a governmental source are protected during a bankruptcy. This includes social security and social security benefits. Disability benefits provided by the Veterans Administration are also protected. This means that you will not lose your benefits because you filed a bankruptcy. This also means that any funds traceable to your benefits will also be protected.
You may also be wondering if future benefits can be affected by filing a bankruptcy. Many individuals worry that their benefits might be reduced or terminated if they file for bankruptcy. This simply isn’t true. Generally filing bankruptcy and receiving disability benefits are not related to each other. An individual does not waive any right to receiving disability benefits by filing a bankruptcy. Filing a bankruptcy generally does not affect whether or not you qualify for benefits.
However, future benefits could be affected by overpayments. If you received social security overpayments, this can be discharged in bankruptcy. But, the payor of the benefits may have the right to defer future benefits until the overpayment is paid back. If you are considering bankruptcy and have questions about your disability benefits, speak to a bankruptcy attorney. They will be able to help answer your questions and guide you through the process.
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If you are dealing with an overwhelming debt problem, it is important to discuss your options with a bankruptcy attorney. If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
