Legal Question in Bankruptcy in Ohio
I am filiing bankruptcy and i filed and had hearing for social security disability and am getting a lump sum of back money and start getting monthly check can they take my ssd money for my debt or is it off limits thanks
1 Answer from Attorneys
I read Section 207 of the Social Security Act to prevent a creditor from seizing funds you are to receive from Social Security or seizing funds in a bank account that came from Social Security payments. Ohio's exemption statute also appears to shelter your right to receive Social Security benefits.
However, it is not so clear what happens to lump sum Social Security benefits received prior to filing bankruptcy that have been sitting in your bank account, especially if they've been commingled with other funds. Neither is it clear what happens to lump sum Social Security benefits (representing past-due payments from prior months) that come into your bankruptcy estate after you file.
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