Q: Are SSDI payments received after a Chapter 7 bankruptcy filing protected from creditor process in Virginia?
Client filed for Chapter 7 in Virginia on October 30, 2013 and received lump sum SSDI payment in early November. Client also placed this payment into an account with $10 from another source, thereby "comingling" the funds. Can this SSDI payment (and future payments) still be protected from the US Trustee and creditor process in her bankruptcy proceedings?
A: A: The Bky court only looks to income prior to the filing. Generally, SS is exempt from the Means Test and garnishment; however, once it is your bank account the source is no longer considered, so it can be taken. However, before it is in the account, they cannot take it.
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