I filed for Chapter 7 bankruptcy last week. I applied for Social Security Disability in August 2007. I never believed I would receive it. Well last week I had a large sum of money deposited in my checking account and the SSD was retroactive from Jan 2007. I have read that SSD is exempt as income for the means but I read something about the lump sum amount. Does anyone know something about this ? I'm little confused they can the lump sum if it is SSD.

Debbie

Welcome to AMHD. Last week was a big week. Just curious: did your past due benefits arrive before or after your Chapter 7 was filed? And, Do you have an attorney? I was able to find this: [42 U.S.C. 407] (a) The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law. Social Security Act §207 (http://www.socialsecurity.gov/OP_Home/ssact/title02/0207.htm)

The money was deposited into my account on Mar 20 and the BK was filed on 3/21/08. How about that for good timing. Yes I do have a lawyer although I'm questioning his competence.
I did read that social security act and it seems pretty straightforward to me. Thanks for bring this to my attention. I've used 70K of my 80K in the last year for living expenses.