Bankruptcy can be a powerful tool for debt relief. If considering bankruptcy, but you receive Social Security benefits, there are some things you might want to be aware of. According to federal law, Social Security benefits are exempt in bankruptcy cases. Both the Social Security Administration as well as bankruptcy courts uphold this. However, there are some situations in which your benefits may be affected.
Chapter 7 vs Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 bankruptcy have different but equally valuable uses, depending on your situation. Social Security also relates to them differently.