Number of people are concerned about their social security benefits while thinking of filing for bankruptcy. However, a person can be relieved on comparing what happens with social security benefits before, during, and after bankruptcy. Actually social security benefits are more protected during bankruptcy.

A debtor who is earning social security benefits might be using it for his/her living and to pay off some of his/her debts. On filing for bankruptcy, no creditors can take any action against such debtor and any action commenced, such as garnishments, is stopped.

If a debtor’s only source of income is a social security benefit, then s/he may find it difficult to obtain a Chapter 13 bankruptcy petition. However, under a Chapter 7 bankruptcy s/he may give up any assets, if there are any and his/her unsecured debts are then discharged. Such a debtor’s social security is safe and will be left untouched. It should be ensured that social security is paid into a bank account that doesn’t have funds from any other source.

Thereafter, a debtor who has been discharged from bankruptcy will be liable only for secured debts like mortgage and non dischargeable debts using his/her social security. Apart from this, a debtor’s social security is safe and protected by the bankruptcy laws.