Can you collect social security after bankruptcy?

This is an important question for those who are facing financial struggles but who are concerned about continuing to collect benefits from social security through retirement payments, disability payments or supplemental security payments. The answer is that yes, you can continue to collect social security payments after bankruptcy. This is true whether you file a chapter 7 bankruptcy or a chapter 13 bankruptcy.

If social security payments are your only source or means of income, it is most likely that you will be able to qualify for a chapter 7 bankruptcy. Chapter 7, or total liquidation bankruptcy, is an option for those who take a "means test" to show that they do not have sufficient income to enter into a chapter 13 repayment plan. When you are qualified for and decide to file a chapter 7 bankruptcy, an automatic stay is immediately placed to stop creditors from attempting any collections activities against you. During the chapter 7 process, you will be required to turn over assets that you may have which are not exempt. You usually will be able to keep your home and certain other personal possessions valued at under a certain dollar amount. After the asset sale has been completed (if there are sufficient assets to sell) then the money is given to your creditors according to legal rules that set the priority by which they are paid. The remaining balance is then forgiven on the debts. This means that you will no longer have to use your social security income to service your debts (unless of course your debts are not dischargeable through bankruptcy, which applies mostly to secured debts and student loans). 

To get help understanding how bankruptcy will work for you, it is in your best interests to speak with a qualified bankruptcy attorney in your local area.