Knoxville Attorneys Clark and Washington Explain Disability Benefits and Bankruptcy

    KNOXVILLE, TN, May 20, 2015 /24-7PressRelease/ -- Disability benefits from Social Security Disability Insurance (SSDI) are often exempt from bankruptcy filing. This is because debtors receiving this type of disability payment are unable to work and they need these benefits to support themselves and their dependents.

However, according to expert Knoxville bankruptcy attorneys Clark & Washington, if you received a lump sum as an SSDI payment, you have to show proof of this in your Chapter 7 bankruptcy filing in order for it to be exempt.

Disability benefits from Supplemental Security Income (SSI) are protected and exempt from Chapter 7 bankruptcy under federal law. If you receive disability payments from some other source (such as from a private program), know that these types of disability benefits do not enjoy the same protection under state and federal laws as SSDI and SSI payments. The amount of private disability benefits that is exempt from bankruptcy varies from one state to another. To find out your state exemptions, it is best to consult with a learned and trustworthy bankruptcy attorney in your region.

When filing for Chapter 13 bankruptcy, any non-exempt asset increases the amount you have to pay your creditors under your repayment plan. You have to declare any disability benefits you are receiving when filing for bankruptcy. In a Chapter 13 case, the bankruptcy court has the power to determine how much of your disability benefits you can keep and how much can go to paying off your creditors.

Consult with the bankruptcy experts at Clark & Washington before you file for bankruptcy in Knoxville. Their experience and training in this field will give your bankruptcy case a much better chance of success.

To learn more about them, go to http://knoxville-bankruptcy.com/.

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://knoxville-bankruptcy.com/.

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