Legal Question in Bankruptcy in Massachusetts

Social Security DI and Bankruptcy

we are in bankruptcy waiting on discharge, my husband is disabled and we have been trying to get ssdi for 2 years now, in the last few days we received a letter from ssdi that he was approved and they were going to pay him a lump sum from the time the disability started. We want to reaffirm our house and cars and that would still leave a substantial balance of the lump sum, (although not more than what we owe total on the house and cars)however my husband is totally disabled our medical bills and prescription costs continue to rise, I have taken a job and with his ssdi, the lump sum and my weekly pay we will be able to pay our secured debt and live.

When he receives the ssdi lump sum is it insulated from bankruptcy colletion or disclosure, do we need to do anything special? we have had a 341 hearing and we did not know of the approval and disclosed he had applied


Asked on 2/09/07, 7:36 pm

1 Answer from Attorneys
David Baker Law Office of David Baker

Re: Social Security DI and Bankruptcy

I gather from the question that you are not being represented by an attorney. You MUST consult an experienced bankruptcy attorney right away. Bankruptcy is a particularly difficult area of the law for a non-lawyer. While I don't have enough facts to say for certain, I think you could keep the lump sum, but it is very important that you have a lawyer look at all the facts. Good luck!

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Answered on 2/09/07, 8:21 pm


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