What Happens to My Social Security Benefits in Bankruptcy in NYC?

What Happens to My Social Security Benefits in Bankruptcy in NYC?

 

When senior citizens or people receiving disability benefits find themselves in a position where they have to file for bankruptcy in NYC, they often wonder if their benefits will be claimed as a result of their bankruptcy proceedings. The federal government has made it a point to keep social security benefits of any kind off the table. In some instances, it has been shown that when people do not pay attention to what’s going on in their proceedings, they are more likely to fail to notice that they have included these benefits as an asset that a trustee may try to take from them. If you do not properly exempt assets they can be lost in the process. Exemptions are found in statutes listed by congress.

If you’re worried about your benefits being included when you file for bankruptcy in NYC, you must first enlist the services of a skilled bankruptcy attorney. Their expertise will increase the possibility that you will have a cohesive plan for how you should proceed. Anyone who is in a position where they have to file for bankruptcy has a high level of anxiety. As a result, they will have a hard time making a decision as to what they should do next. It’s the responsibility of their attorney to act on their behalf to remedy the situation.

Once you have made your way out of your bankruptcy proceedings, you need to revisit the reason why you needed to file for bankruptcy in the first place. You have to come up with a budget that lets you pay for your necessary expenses while also leaving room for any incidental costs that will pop up along the way. Your budget is something that you have to stick to regardless how you think your money should be spent. Your long-term stability depends on your ability to stick to a budget.

People who are on social security are described as individuals “living on a fixed budget.” They have the bare resources to pay for their important expenses. At times they have to let other costs fall by the wayside in order to pay for the more important things. The reality of the situation is that bankruptcy cases among individuals who rely on their benefits are common. It should serve as a comforting thought that their benefits would be protected if they were to file for bankruptcy in NYC. They need to have a skilled attorney on their side to make it possible for them to escape the situation unscathed. Making it out of bankruptcy would be quite the ordeal if it wasn’t for the presence of a skilled legal representative.