social security

[thegiver]

I am having chapter 7 forms filled out by a legal doc firm which should be completed ready to file by next week.I am just filing on my cc bills.....my bank acct is almost depleted...I do pay my ins and cell phone bill by auto from my checking acct ...what worries me is my ss check is auto deposit and barely covers my bills ..actualy have very little left for neccessities if any !!...my question is , if i file and my ss check goes into the bank ..can they take or put a hold on my ss money? has anyone had an experience with this.....im not sure how to handle this , i know you cant have money in the bank when you file or at least very little ........HELP !
THANK YOU ONCE MORE

i have thought of discussing this with my bank...should I? or should i even tell my bank im filing....will they be contacted..Im not filing on my home which is with my bank....

[hhou812hh]

I have no experience in SS income, but you may want to stop your direct deposit of SS benefits and pay your bills via money order.

This question regarding bank accounts pops-up regularly and there are exemptions and they are pretty good if you don'r claim a homestead exemption, but after looking up your state exemptions (below) you can't use any federal exemptions allowed in most other states. Sorry to hear. Now I know why some close friends I know just moved out of Alabama. They hated it there and now I know why.

Good luck to you!!

Exemptions or Assets that can be kept in a Bankruptcy
In general, a debtor may claim exemption of his homestead and certain personal property from attachment and execution of a judgment, or in a bankruptcy proceeding. The Alabama statutes permit exemption of a debtor's homestead up to the amount of $5,000.00 (C.O.A. 6-10-2); and personal property up to the value of $3,000.00. In addition, all family portraits or pictures and all books used in the family are exempt from levy or sale. (C.O.A. 6-10-6.) In a bankruptcy proceeding, a debtor, who is a resident of Alabama, is not permitted to elect the exemptions provided under the federal Bankruptcy Code even though the federal exemptions may be more beneficial in his situation. (C.O.A. 6-10-11.)

[thegiver]

thank you for your answer , I have read the ala. laws, not sure i understand them all...i have searched but have found nothing specificaly applied to reg. social security income...I lived all my life in michigan {my dad was from ala.} and moved here when i retired..ala is a great place untill you need something !! so I do know what your speaking of in re to your friends ! a lot of their laws are dif here. maybe someone from ala. that is filing that may come to this site can let me know of their exp. or if anyone else might know about the ss issue i would appreciate any info...
one law firm i called that advertized they did bankruptcy said they had not had one in 11 years ?? that is scary !! tha nks again for the info

[HHM]

The social security exemption comes out of the Social Security Act, so no worries.