February 28, 2010
File Bankruptcy While on Social Security
If you’re in financial trouble and your only income is Social Security, you can’t file bankruptcy. But you don’t necessarily have to. If you do not plan on going back to work, you may not need to file bankruptcy because you are considered to be judgment proof. That means that while your creditors can sue you and obtain a judgment, they will not be able to collect anything from you. Creditors cannot recoup the money from your Social Security income. You should make sure however, if you own any other real or personal property that creditors can take from you, you should file bankruptcy to protect it.