According to the Eighth Circuit Bankruptcy Appellate Panel, a bankruptcy debtor cannot lose social security benefit payments in a bankruptcy case, even the money is paid as a $17,165 lump sum for past benefits. In re Carpenter, No. 08-6046 (8th Cir. BAP July 13, 2009), held that section 407 of the Social Security Act excludes such payments from the bankruptcy estate. Under the logic of this decision, social security payments of any kind are excluded from the bankruptcy estate in either chapter 7 or chapter 13 cases, and the debtor can keep this money without even needing to claim it as exempt.
Does anyone know if federal pensions get same treatment ,if not how would one learn this without hiring an attorney ??
CSRS or FERS benefits can be garnished only for alimony, child support, or in cases of child abuse. The garnishment must conform to all State law requirements for garnishment actions involving private employers, and is subject to thelimitations in Title 5, Code of Federal Regulations, section 581. Does sec 581 have the same standing as sec 407 of SS code ? If so I have no income .
Does anyone know if federal pensions get same treatment ,if not how would one learn this without hiring an attorney ??
CSRS or FERS benefits can be garnished only for alimony, child support, or in cases of child abuse. The garnishment must conform to all State law requirements for garnishment actions involving private employers, and is subject to thelimitations in Title 5, Code of Federal Regulations, section 581. Does sec 581 have the same standing as sec 407 of SS code ? If so I have no income .