Will the Bankruptcy Trustee Take My Disability Check?
By Jill Michaux, Kansas Bankruptcy Attorney on Nov 3, 2007 in Bankruptcy Practice and Procedure, General Bankruptcy Information, Kansas, Protecting Assets In Bankruptcy
The bankruptcy trustee cannot take Social Security disability payments and Veterans Administration benefits.
Private disability insurance payments are exempt under Kansas law and federal bankruptcy law. Compensation paid for work injuries is also exempt in Kansas.
If you have a claim pending for any disability benefits you should list the claim as an asset in your bankruptcy schedules and discuss with your attorney whether you can exempt the pending claim and any money you maybe paid for future benefits or back pay. You should not cash any disability checks without direction from your bankruptcy attorney.
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