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View Full Version : Can Chapt. 13 trustee take back award?


olelefty
Dec 24, 2007, 05:02 PM
I filed for BK in July. Chapter 13 wage-earners plan. I was disabled in 2004 (lost use of my right hand and arm) The claim was originally denied. Now SS has decided to give me disability. My back award amounted to 20,000 the trustee wants this turned over to the plan as a windfall profit.
Olelefty

slowandeasy
Dec 24, 2007, 05:22 PM
Hello
You got back pay of 20,000! Wow that's a lot! I am by no means a bk expert but if the social security {goverment} gave you back pay for that much I can see why the chapter 13 trustee would at least question that. May be our bk expert on here can answer this for you.

Fr_Chuck
Dec 24, 2007, 06:00 PM
This is money you are getting, since you filed saying you don't have enough money to pay your bills, if and when you get this money, of course it is suppose to be used to pay your bills,

Why would you think you get to cheat your creditors out of being paid, you want to not pay them, so you can have and use the money for other things??

What part of paying your bills if you have the money don't you understand.

But yes of course he can take the money,

George_1950
Dec 26, 2007, 06:50 AM
You have a choice: dismiss the Chapter 13 and keep the money or stay in the Chapter 13 and deal with the Trustee. Your SS award is property of the estate and subject to the desires of the Trustee. You should review your exemptions and make sure all of them have been used properly.

mr.yet
Dec 26, 2007, 12:12 PM
Speak to your BK Attorney, but SSI is exempt.

Federal law makes Social Security benefits exempt from levy, garnishment, and assignment- 42 USC 407(a) states. "In general the right of any future payments under this sub chapter SHALL NOT be Transferable or assignable. AND NONE of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levey, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law".
This means that even if a creditor or debt attorney, collection agency has a judgement against you they CAN NOT garnish your SS payments nor can they take the money from you after it has been paid to you; for example, the portion of your bank account that is attributable to your SS benefits is EXEMPT from LEVY OR ATTACHMENT