Chapter 7 & bank & SSI income

[beachlover]

My brother is filing for chapter 7...he is mentally ill & does not work. he received a large check a while back from social security for payments that were back due. Lawyer told him a few months ago it was ok to keep that money in the bank as that can't be touched. Today the lawyers office called him questioning the money in the bank. He is in NY state. What happens to that money? Will it be frozen and paid to his creditors? I know nothing about bankruptcy but I need to try to get an answer for my brother before his appointment tomorrow. Thank you.

[shabam]

If he hasn't retained the lawyer, it may be worth while to look for another lawyer.

It all depends on the amount.

[Chowder]

social security for payments that were back due.

Aren't these exempt?
Why is an Attorney calling asking about this money??

[beachlover]

The research that I did showed that Social Security is exempt. The lawyer said he originally told my brother to spend the money but according to my brother, the lawyer told him it coudln't be touched..so he kept it in the bank. He went to the office Friday morning and actually got the money he paid to the lawyer back...he's closing his account next week and will keep the cash in a safe deposit box. Not the best solution but when you have a mental illness and think the world is out to get you I guess it makes sense. He'll find another lawyer to proceed with the bankruptcy.

[music12]

i think as long as you have documentation that it's SSI it's exempt. also, to be safe it needs not to be commingled with any other money.

taking it out of the bank and putting in a safe deposit box won't really do any trick, because on the petition they ask you if you have a safe deposit box and what's in it.