Can I File for Bankruptcy and Keep my Social Security Benefits?

Yes. When you file for bankruptcy you can claim certain things (i.e. social security benefits) as "exempt" and thereby keep them. California gives debtors a choice between the state law exemptions found in Code of Civil Procedure section 703 and the exemptions in section 704.

Section 703 provides that the debtor's right to receive social security benefits is exempt for an unlimited amount.

Section 704.080 provides that social security benefits are exempt up to $2875.00 for a single payee and up to $4300.00 for a joint payee.

If your social security payment amount are higher than the section 704.080 limits, then the section 703 exemption is obviously a better option.

Categories: Chapter 13, Chapter 7