The U.S. Bankruptcy Code does not disallow individuals or married couples from obtaining Social Security benefits or participating in any government welfare program as a result of having their debts discharged or restructured through bankruptcy.
As part of the Chapter 7 and Chapter 13 petition, the applicant will be required to list all income and assets, including any benefits received for Social Security Disability Insurance (SSDI), Supplemental Security Income, workers' compensation and other benefits programs. Failing to report the benefits as income can result in disallowance of debt discharge and possible fraud charges if the false information was given or withheld deliberately.
Do You Owe Money to Social Security for Overpayment?
A component of the Chapter 7 bankruptcy process requires a full accounting of your assets, income and debts. If your schedule reveals that you owe money to Social Security for an overpayment, the debt may be disallowed for discharge.
Will Bankruptcy Disqualify You for Future Government Programs?
Section 525 of the U.S. Bankruptcy Code prohibits discriminatory practices against individuals who have filed for bankruptcy. While your bankruptcy is in adjudication, there may be a delay in approval for certain programs due to the pending legal action. However, you should not be refused application or approval for government social welfare programs based solely on your judgment.
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Learn more about bankruptcy and Social Security and welfare programs. Call an experienced Florida bankruptcy attorney at The Golden Law Group. We are ready to answer all of your questions about bankruptcy, debt relief and illegal collections practices.
From three convenient office locations, we represent individuals, families and business owners in bankruptcy matters in Bradenton, Brandon, Sarasota, Tampa and communities throughout the Florida Gulf Coast region. If you are over your head in debt and don't know where to turn for relief, turn to us. Contact us today for a free, no-obligation consultation.