Many people are under the impression that receiving any type of assistance or benefit checks makes them ineligible for bankruptcy. There is actually no rule against qualifying for bankruptcy based strictly on the receipt of benefit checks. Rather, your entire financial situation is taken into account to determine eligibility.
In order to be eligible for bankruptcy the court evaluates your income, total debt liabilities, asset worth and any additional wages, such as assistance or benefit checks. Any amount of monies you receive by way of Social Security, retirement accounts, domestic support payments or insurance benefits will be used to calculate your overall income, but that does not mean that you will be disqualified or even be subject to losing these funds.
Federal bankruptcy laws offer protection of much of these benefits from liquidation in a bankruptcy case under exemption laws. Many states will even offer a higher level of protection of assets and benefits, including:
- Supplemental Security Income
- Social Security Disability Insurance
- Supplemental Nutrition Assistance Program
- Retirement benefits
- Insurance/Survivor benefits
- Domestic support payments
- Military/Veteran benefits
If you are considering bankruptcy, it is important you speak with a Dayton bankruptcy lawyer about eligibility requirements and how to ensure your benefit checks remain exempt in the process.