Will I Lose My Disability Payments if I Go Bankrupt?

The whole purpose of bankruptcy is to bring financial relief to individuals who have no other options available to them. It is not designed to increase their hardship. For those with disabilities they can easily end up in a dire financial situation. Most often they are on a limited income. Then they frequently get hit with medical bills that they have no coverage for that can be related to their disability. In most cases the SSDI and SSI payments are exempt from bankruptcy. However, there can be exceptions to this. Every State has different laws concerning bankruptcy and it will depend on how these relate to the disability payments.

You should discuss the possibilities of what can happen with your disability payments with a Fort Worth bankruptcy attorney. If you are receiving some type of disability payment from another source this could be at risk for being included in your bankruptcy.

Another area of caution when it comes to disability and bankruptcy is if you received a lump sum payment that was related to your disability. You will have to produce a paper trail that will show this payment was actually as a result of your disability, so the bankruptcy trustee does not attempt to include it in your estate assets. Provided you can show proof of this you may not even have to claim them as being exempt.