Local Law Firms Home > Bankruptcy Overview > Chapter 7 > Exempt Property: Public Benefits Many people throughout the United States receive some form of public benefits. No matter what type of benefits they may be, how frequently they come, how much they are, or what the reason for receiving them may be, these benefits are needed for many people in order to get by and properly function on a day-to-day basis. Since these are valuable and monetary payments that are received by eligible people, many people receiving public benefits are worried about losing them after filing for Chapter 7 bankruptcy. They worry that these payments will no longer go to them, but instead may go to those accounts that they owe money on. It’s important to realize, though, that public benefits are categorized as exempt property, so this cannot happen.
One of the most common types of public benefits in the country is SSI, which is a Federal income supplement program, mandated by the Social Security Administration (SSA) and financially taken care of by general tax revenues (not Social Security taxes). It offers monthly payments to those who have restricted revenue and resources and who are at least 65 years old, or blind, or disabled under Social Security law. Disabled or blind children under age 18 can also be eligible to receive these types of public benefits as well. Do you have legal questions regarding Chapter 7 bankruptcy and exempt property, such as a pension? Our bankruptcy law attorneys are here to help answer all of your questions and inform you of your rights. Contact a bankruptcy lawyer in your area today for more information. Did you know? For a disabled child, the program can offer monthly cash payments based on family earnings; make a child eligible for Medicaid medical treatment and other services in many states; and guarantee referral of a child into the system of care accessible under State Title V programs for Children with Special Health Care Needs (CSHCN). |