Social Security Benefits

  • Bankruptcy

Social Security Benefits Retention and Bankruptcy

The retired citizens of the USA can enjoy the benefits of social security fund, although it may be a meager sum. Social security funds are a fixed amount that the USA Government obliges its citizens to enjoy after retirement. The social security fund is managed by taxes paid by the citizens. Social security fund is a fixed amount a retired citizen receives every month throughout their life after retirement.  This amount may be substantial, but it is of great help to people who are retired and helpless. Being an old retired person, with no secure income, any amount is good.

Old age attracts a lot of expenses be it medical or health, pooling of all the retirement funds, may sometime prove to be less. The retired person may take loans to cover their expenses. Under Chapter 7 the retired citizens can apply for bankruptcy if they are not able to support themselves and pay the loan availed for health treatment.

Exploiting Chapter 7

There may be cases where the retired citizens may want to exploit and enjoy the benefits by declaring bankruptcy. The court may not justify bankruptcy and ask the retired citizens to employ Chapter 13 to repay their loans under easy payable installments. The court may observe all the plans and resources that the retired citizens may utilize and the net savings after the expenses. Scrutinizing the income and expenses balance sheet, the court may suggest the employment of Chapter 13 to repay loans to the creditors.

In the case where the expenses cancel the income and just a mere social security benefit remains the client can seek Chapter 7 bankruptcy. Such retired citizens may have difficulty in paying debts and can take help. The court, however, is stringent and undertakes scrutiny before declaring bankruptcy.

Should Social security benefits be included in the income figure?

Enjoying Social security benefits are the basic rights of all retired USA citizens. Social security number is specifically designed to the citizens of the USA, so that they can lead a respectable life after retirement. People who are affluent can surrender social security benefits. However, old age brings in a lot of medical expenses, surgeries and other health expenses that may propel them to take loans to cover the expenses. The loan may turn into a huge pile making it difficult for the retired citizens to pay. Once they are thick into the debt, they find no other way but to declare bankruptcy.

The court after observing the dire circumstances may allow the client to declare bankruptcy. The court undertakes the lifestyle enjoyed by the client and the means to fund and support their future life. It is not easy to convince and justify the case in court. The client can seek professional help by consulting Recovery Law Group.

Surrender social security benefits?

Arguments and discussions often circulate regarding the securing of Social security benefits after declaring bankruptcy. The argument stresses that the client may have too many benefits in their hand. However, the client can voluntary surrender social security benefits. Apparently, as the case goes the client is sucked badly by the loans and can barely make the ends meet. In such case, the Social security benefits are exempted from bankruptcy procedures.

The retired citizen can keep their Social security benefits even after declaring Bankruptcy. Social security benefits need not be an issue for clients who are honest and in a bad situation. They may require every support and money, even if it is in the form of Social security benefits. The case of such clients is genuine, and the court supports them and therefore exempts social security benefits even after declaring bankruptcy. To present your case strongly in court you may contact at this number- (888-297-6203).


    2023-01-12T09:10:17+00:00