Many debtors wonder if they can and should file for bankruptcy if they are only receiving Social Security Income. If you are only collecting Social Security Income, your creditors cannot garnish your wages and cannot levy, or freeze, your bank accounts (if the only source of income going into the bank account is social security). With this being the case, many people wonder why they should even bother with filing for bankruptcy if they cannot be garnished or levied. In some cases, our attorneys may advise that you do not necessarily need to file since the creditor may have no way to collect the debt from you. With that being said, though, it is important to remember that no two cases are alike, and what may be a good option for one person may not be a good option for another.
While your creditors may not be able to garnish or levy your bank accounts, there is nothing to stop them from continually harassing you through threatening phone calls and numerous letters. For many people, the phone calls alone drive them to file for bankruptcy so that they can stop living in fear day to day that the next time they answer the phone is yet another bill collector. Filing for bankruptcy would stop the threatening phone calls and give you a chance to relax once and for all. You would receive a fresh start, and a break from collection efforts.
Although there are some individuals that our attorneys may advise not to file for bankruptcy while only receiving Social Security Income, there are some individuals that we do in fact suggest to file for bankruptcy. These individuals are typically people who have property in their names such as a house. Your creditors cannot garnish your social security or levy your bank account if your only income is from Social Security; however, they can put a lien against your real property. This may be reason enough to file for bankruptcy. A judgment lien on your home would prevent the sale of your home in the future for you and any of your dependents, family, etc who may inherit your home in the future. Filing for bankruptcy would prevent your creditor from placing a lien on your property. If a lien is already on your property, there are ways to include them in your bankruptcy filing, depending on which type of bankruptcy you end up filing.
If you are only receiving Social Security Income, you should contact a St. Louis Bankruptcy attorney to discuss if filing for bankruptcy would be a good option for you