Are social security payments protected from bankruptcy?

Social security payments are protected to a certain extent in bankruptcy.  The reason for this is they are treated like income for the purposes of the bankruptcy and are used to determine which type of bankruptcy you are eligible for, what your payments will be, if any, and the length of your bankruptcy, if applicable.

Treated as Income

Social security payments are listed on Schedule I of your bankruptcy documents, which is your income schedule.  They are also used to calculate your disposable income on the Means Test, which is a tool used to determine which chapter of bankruptcy you are eligible for and the applicable plan length if you must file a Chapter 13. 

Low Income

Because social security payments are not typically very high, it is unlikely they will cause an adverse outcome in your bankruptcy. While this is usually the case, if you or your spouse has social security income coupled with a higher salary, you may be forced to file a Chapter 13 and/or pay more to unsecured creditors. However, social security payments are still technically protected, as they cannot be garnished or seized during the bankruptcy.  They are protected like other forms of income.

Chapter 7

If your social security payments are low enough to qualify you for a Chapter 7 bankruptcy, you will likely complete the bankruptcy in a minimal amount of time without risking any of your income. This is only the case, however, if your income qualifies you under the Means Test. If you do not qualify, you will have to file a Chapter 13 and pay a portion of your debts.