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Bankruptcy Law/Protecting a Social Security Retroactive lump sum payment

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Expert: Norma Duenas - California Bankruptcy Attorney - 10/25/2009


Question
I will be receiving Social Security Disability benefits beginning November 3, 2009 in the amount of $1,449.00 (net.)  I filed twice, was denied, hired an attorney, appeared and testified in court on July 31, 2009.  In August 2009 I received a letter from Social Security in which the judge ruled in my favor (a fully favorable judgement.

My question is this:  I will be receiving $31,000.oo +-, after attorney's fees.  My attorney had already been paid his fee of $6,000.00.  I am currently going through a Home Loan Modification.  I do not want to lose my home!!  As soon as the Home Loan Modification is accepted (which I am praying that it is) I will have no other option than to file Chapter 7 Bankruptcy.

What steps should I take to protect that retroactive lump sum payment???  I met with a bankruptcy attorney yesterday for a free consultation.  I asked HIM that question and he couldn't give me an exact answer.  He said he didn't know.  The person handling my bankruptcy is a paralegal that has over 25 years experience.  I am going with her because she only charges $125.00.  I have also asked her this question and have not yet received an answer.

I am very worried and stressed about this.  I need to know how to protect the lump sum payment so my creditors can't get their hands on it!  If they do, I will be left with NOTHING.  I need to save that money for my retirement.

I am a 55 year old female, am buying my home, my car is paid for (a 2004 Toyota Corolla LE.)  I am not married, have no children, live alone and suffered 6 back and knee injuried while working for the CDC.  I also have a pending worker's comp case which has been dragging on for over 3 years.

Can you please let me know what I need to do to protect that money?  If you have any questions regarding this matter feel free to call me at (559) 734-7736.

Thank you so much in advance for your time.  I hope you can help me since no one seems to know the answer.

Sincerely,

Arlene M. Gonzales
4130 W. School Avenue
Visalia, CA  93291

Answer

California Bankruptcy
Social security benefits are considered exempt. Since you are representing yourself, you should argue that this includes the lump sump payment that you will be receiving from Social Security. Under California exemption laws a persons right to receive social security benefits is protected. I would argue that the lump sump payments is an exempt asset pursuant to California's exemptions laws.

If you need further assistance visit us at: http://www.socaladvocates.com
    Questioner's Rating
    Rating(1-10)Knowledgeability = 10Clarity of Response = 10Politeness = 10
    CommentThank you very much for your response to the question I had regarding Social Security Disability retroactive lump sum payments. You answered the question promptly and I was able to understand it easily. Arlene Gonzales p. s. I will not be forced to file bankrupty. I picked up a "Senior Advocate" free publication at the market and found an article. After reading the article, I contacted the attorney who sent me a packet of information to fill out and return to his office. He stated that an unsecured debt (credit cards) have 4 years to collect on a debt. He will be contacting my credit card companies and I won't need to file bankrupty!!! About 7 weeks ago I completed and made copies of documentation and started a "Home Loan Modification." I should receive the decision from my mortgage holder (Bank of America) within 30 days or so. Thanks, again, for your help


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Norma Duenas - California Bankruptcy Attorney

Expertise

Norma Duenas is a California Bankruptcy Attorney representing clients in Chapter 7 and Chapter 13 consumer bankruptcy cases. Norma Duenas is the founding member of Southern California Law Advocates a consumer bankruptcy law firm. For further information you can visit us at: California Bankruptcy Attorney - Riverside, Los Angeles, & Orange County

Experience

Have filed over 350 consumer bankruptcy cases in Orange County, Los Angeles and Riverside. I have worked previously for Macey and Aleman, the largest consumer bankruptcy firm in the country. Currently I am the owner of Southern California Law Advocates, a bankruptcy law firm with offices in Orange County, Los Angeles and Riverside. Law offices is focused on consumer Chapter 13 and Chapter 7 bankruptcy.

Organizations
California Bar Association American Bar Association Riverside Bankruptcy Attorney

Education/Credentials
University of California, Irvine, BA in Criminology, Law and Society California State University, Los Angeles MS in Criminal Justice University of San Diego, Law School, JD Cum Laude

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