Q: I’m disabled & was thinking of claiming bankruptcy, but I’m not sure if it will effect my SSI. How will it effect me?
A: There are different "chapters", or forms, of bankruptcy. In a Chapter 7, the simplest form, your income is only used to determine your eligibility to file under that chapter. If your income is below the "median income" for the state of PA, you'd have no income issues.
In a Chapter 13 bankruptcy, your income is used to fund a Plan, commonly called a "wage earners' plan", which provides for payment over a period of time up to five years of debts you must pay ("priority" claims and secured claims if you opt to retain the collateral securing the loan), and perhaps some portion of your general unsecured claims (e.g., credit cards, medical bills, etc.), depending upon your income and the amount of your necessary monthly living expenses.
You should consult a bankruptcy lawyer to examine your debts and advise you about your eligibility.
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