You canвЂ™t afford to pay all of your bills, and you are contemplating bankruptcy, you need to be aware of how these benefits are treated in bankruptcy if you receive Social Security benefits (SS), or Social Security Disability Insurance benefits (SSDI. But whether it is in your best interest before we discuss how these benefits are treated you should consider whether bankruptcy is even necessary in your situation, or. For you, it is important that you understand the different bankruptcy options before you determine if bankruptcy is right.
There are two main typical bankruptcies for customers, Chapter 7 and Chapter 13. A Chapter 7 bankruptcy is normally known as a вЂњFresh StartвЂќ bankruptcy as it discharges (wipes out) many forms of personal debt within about 3 months of filing bankruptcy (there are numerous exceptions to discharge, including many taxes, alimony/maintenance, son or daughter help, figuratively speaking, and many federal government debts and fines). A lot of people whose only revenue stream is SS and SSDI benefits, effortlessly be eligible for a Chapter 7 bankruptcy. Luckily, this might be usually the cheapest, fastest, simplest associated with two bankruptcy choices.
A Chapter 13 bankruptcy is normally known as a вЂњWage EarnerвЂќ bankruptcy. A Chapter 13 is normally a far more complicated, longer, more costly bankruptcy than a Chapter 7. in the event that you file a Chapter 13 bankruptcy you’ll be needed to register a вЂњPlanвЂќ because of the court, which proposes the method that you will pay back some, or all, of one’s financial obligation, and just how very long you certainly will just take to pay for that financial obligation right back.