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    Question about Social Security Exemption

    Hi, I want to say thank you for all the advice from previous questions I have asked. What a nightmare this process has been. Anyway the question I have, that maybe someone can answer is...is that I know Social .Security payments are exempt, but if it accumulates in an account, say to like $6000 when the Bk is filed, can the monies still be exempt because the monies are from S.S.? Or, is it for the 6 month period leading up to th BK. I have read conflicting to little info on the Web. Any info would help. Anyone out there run into this question. Thanks Jenra!

    #2

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      #3
      Thank you for the response. Are you saying that if any interest is earned on the S.S. money? Or interest on co-mingled funds? I plan to keep the account just S.S. money. Thanks for your Help!!!!

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        #4
        Either way. Whether it is interest earned on the SS money or in any way co-mingled with other funds in the account.

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          #5
          Thank you Tigergem, for your prompt response. I feel as if I'm becoming close to being an expert in all matters Chapter7 LOL!

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            #6
            Soc Sec

            So to clarify, if I put my ss payments under my mattress and earn no interest on them, they are exempt?

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              #7
              Interest on Social Security is exempt so long as it is 100% traceable to Social Security and is sitting in the same account. I have had clients with several thousand dollars in clearly identifiable Social Security accounts which included interest, and, in all of the years I have been in this business, have never had a Trustee attempt to take the funds -nor have I seen any case law claiming otherwise. If any one has case law I would like to see a cite as this would be an interesting issue that the Trustees in AZ have never looked at.

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                #8

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                  #9
                  ss

                  This is great info...attorneys I spoke to never said it was exempt...I read the US Code section and the Ohio code again and it seems like ss is exempt...

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                    #10
                    I'm just adding on here, rather than a new thread. If alimony is exempt from garnishment etc in MY state...Colorado, then hopefully the same holds. On date of filing my 7, since I had no time to plan after my 13 was dismissed, I had a full month's worth of alimony in each of two checking accounts. (The alimony goes into one account which acts as a 'holding' account and then I transfer it , as needed, into the 'spending' checking account. This is the same account taht i have my social security going into...whch started in October. I'm keeping this money for paying of income taxes because they don't take out monthly or quarterly from alimony and I hae to pay what is owed as one lump sum. I don't put anything other than alimony or ss into this account, so I'm hoping that no one will try and take it....or I might get feisty!

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