Bankruptcy Forum

Chapter 13 and Disability Backpay

flower
08-15-2009, 08:21 AM
:unsure: Hi all!! You helped me with my Chapter 13 a while back. Now I have a new question.

I am about 2 1/2 years into a five year Chapter 13. I am disabled and getting ready to apply for disability. IF I win the case, which could take anywhere from 6 months to three plus years, I would be awarded backpay.
I saw an article posted on this website that said that the backpay would be protected. I hope that this is true. It was a new ruling at the end of July.

My question is: Disability atorneys are paid by getting a certain percentage of your backpay. This is a law. They can only be paid this way. I have read that if you give a portion of your backpay to someone else, then the Trustee can come after it. (This was before the new ruling.) Is this still true? Since you have to pay your disability attorney out of your backpay by law, then how can the Trustee touch it?

I called a disability agency asking them to represent my case, and they turned me down, because in the past the Trustee denied them payment. Maybe they aren't aware of the new ruling, or maybe their payment could still be denied them because I am giving it to them??

I hope someone here can answer this. It seems that attorneys don't always have the answers.

Thanks so much!!!