If you are receiving Supplemental Security Income (SSI) and are in debt, you should be aware that your SSI money can never be garnished, nor will you be required to give it up in bankruptcy. In fact, if SSI is your only income, talk to a lawyer about whether bankruptcy is right for you.
Supplemental Security Income
SSI provides cash benefits to elderly and disabled people with very low incomes and who own very little that is of value. Under federal law, SSI money cannot be seized or garnished by a creditor. Creditors may still be able to garnish other sources of income that you have, as well as file a lien on your home.
Bankruptcy
In bankruptcy, an individual either asks the court to wipe out her debts and give her a fresh start (Chapter 7) or, if the person is earning enough money, arranges a court-supervised repayment plan (Chapter 13). A person's income is never taken from them in bankruptcy.
Considerations
If your primary problem is that you don't want to deal with bill collectors, the federal Fair Debt Collections Practices Act gives you the right to send a letter to bill collectors demanding that they stop contacting you. On the other hand, if you are concerned about losing what income or assets you do have, bankruptcy may be a good idea.
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