Will the Bankruptcy Trustee Take My Disability Check?

by Jill Michaux

November 3, 2007

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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Jill Michaux has helped Kansas consumers with debt problems for three decades. She and her partner, Mark Neis, are Topeka's only bankruptcy specialists, board certified in consumer bankruptcy law by the American Board of Certification. She help start the National Association of Consumer Bankruptcy Attorneys.

Last modified: November 3, 2007