Hello. I'm trying to find out if filing for bankruptcy before I file for ssdi is better then the other way around. Also, when approved for ssdi, if bankruptcy has already been filed, will that affect future ssdi backpay? I called an ssdi lawyer who said they wouldn't take my case because my student loans are in forberance and ill be filing bankruptcy soon (seeing how I will soon be sued by collection agencies). They said that backpay could be taken for student loans leaving me with having out of pocket lawyer fees. I asked another ssdi lawyer who said they hadn't heard that. I asked my bankruptcy lawyer and he said he didn't see why that would matter. It was a quick phone call and we are going to discuss it more in person. I'm confused and overwhelmed and life isalready hard enough with my illnesses without dealing with all this. If I weren't sck, id be working and paying my bills like I had for the past 20 years. I'm confused, worried, and scared about making the wrong decision. Please help

My loans are not defaulted on and I know/don't expect to discharge my federal student loans, so I don't understand why ssdi backpay would be garnished if I'm still going to be paying the laon back after bankruptcy and the loan is out of forberance.

Social Security payments cannot be garnished or ceased by any entity other than the federal government (an in some cases, long/short term disability companies - long story on this one). I just filed bankruptcy earlier this year and I can unequivocally tell you this to be true. Now, most important thing you need to know is DO NOT COMINGLE ANY OTHER FUNDS WITH YOUR SOCIAL SECURITY INCOME. You have to clearly show that the money in your account is social security funds and that no other fund types have been deposited into your account. This creates a safety net and quick release of your money should a bank inadvertently freeze your funds or allow a garnishment to go through before they have confirmed your funds are protected by the Social Security Act (section 207 to be exact). If you have any other funds coming in (child support, private insurance long term disability or short term disability, 401k money, etc. etc.) open and deposit these funds totally separate. Any bankruptcy court will uphold the protection of all Social Security payments. They know the law.

With all of this said and in mind, keep in mind that student loans cannot be included in a bankruptcy and are indeed federal; therefore, the government can cease your social security funds to repay your debt to them; however, they tend to be more merciful and will tend to set a repayment plan from your limited income.