People who file for bankruptcy often do so as a result of a traumatic life experience, such as a divorce, job loss, or a medical emergency. Another common reason to file for bankruptcy is the presence of a disability.
Some disabilities can prevent you from working temporarily or permanently, making it difficult, if not impossible, to keep up with your financial obligations. Fortunately, through personal bankruptcy, you may be able to eliminate some or all of your debts and keep creditors from harassing you and your family during this difficult time.
Bankruptcy’s Effect on Disability Payments
If you are receiving or plan to receive government disability payments, you may be concerned about bankruptcy’s potential effect on these benefits. Cases can vary from state to state, however, most states recognize disability payments as exempt income when filing for Chapter 7 or 13 bankruptcy.
It is important to discuss your unique circumstances with an experienced attorney to see if bankruptcy protection is the right strategy for you and your family. If you are experiencing a difficult financial situation due to becoming disabled or if medical bills are accumulating because of a medical emergency, contact Peoria, Illinois attorney Charles E. Covey for advice on how you can tackle your immediate and long-term financial concerns.