I am in chapter 13 bankruptcy. I am 65 and plan to take Social Security benefits in a few months. I also plan to kept working. Will I be forced to increase my payments to the trustee? It is my understanding that Social Security benefits are exempt from being counted as disposable income according to recent court rulings and the Social Security Act clearly protects benefits from bankruptcy. I live and filled in Cleveland Oh. Thank You Roger Weir
I believe this should be directed to your attorney if you are represented in your bankruptcy.
I saw the headline to your question several times and bypassed it as uninteresting. The reason why I believe you haven't gotten more of the volunteer attorneys to answer is dealt with in the legal guide I have written which is at the following link.
I agree that it is likely that your social security benefits will not be able to be used to increase your plan payments, but I don't have any idea what the goal of your Chapter 13 was. I am sure you would prefer to increase your plan payments rather than see your case fail at the 11th hour. Hope this perspective helps!
The bankruptcy code does not use the word exempt in this situation. There are a lot of assets that are exempt. For example, any retirement income from a pension or from a 401K annuity would be exempt, but the income from those sources would be considered when determining the amount that you must pay to unsecured creditors. The bankruptcy code provides that any income received by a debtor that is paid pursuant to the Social Security Act is not considered when determining how much you must pay to unsecured creditors.
If you are in a plan that is greater than 36 months and you are a below median debtor you may be better served by filing a motion to modify your plan, decreasing the term of the plan to 36 months and pay the extra amount to complete your plan earlier.
If you have an attorney, contact him/her and talk about your options. If not, you should consider meeting with an experienced chapter 13 attorney. You can use the Avvo "Find a Lawyer" link at the top of this page to search for an attorney.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
It is unethical for a lawyer to provide you with communication about a lawyer if you have one. Sorry!
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