Central District Consumer Bankruptcy Attorney's Association

Alik and Nick:
Isn't the money property of the 13 estate?
If case not dismissed, doesn't debtor have to disclose to trustee and face a motion to amend?
It will be on next years tax return, so if debtor just blows it or hides it, won't trustee move to dismiss?
Sent from my iPhone
On Apr 22, 2011, at 5:46 PM, Nicholas Giblet@gebeltlaw.com> wrote:
> Dear Alik,
>
>
>
> In Lockhart v. United States, 546 U.S. 142 (2005) (available at http://sc
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Client is in a chapter 13 plan. She was unemployed when she filed bk to
stop student loan collection. (She owes over $100K in student loans.)
Later she filed an app for Social Security (SS) disability benefits, and her
app has finally been approved. She received a big (40K) lump sum back
payment from SSA.
What are her options now? Her goal is to preserve the SSA lump sum payment.
She could buy a car or a small condo.
1. 42 U.S.C. 407 (a) provides: The right of any person to any future
payment under this subchapter shall not be transferable or assignable, at
law or in equity, and none of the moneys paid or payable or rights existing
under this subchapter shall be subject to execution, levy, attachment,
garnishment, or other legal process, or to the operation of any bankruptcy
or insolvency law. Does this mean that the SS back payment 100% exempt
property?
2. Would the SS lump sum payment be exempt from the means test as any other
SS payment?
3. What are her obligations WRT the ongoing chapter 13 case?
4. May she dismiss the chapter 13 case and buy a small condo?
5. May she dismiss the chapter 13 case and buy a small condo and then refile
chapter 13?
Alik Segal
Alik.Segal@gmail.com
310-362-6157
Cal. CD, Los Angeles
Client is in a chapter 13 plan. She was unemployed when she filed bk to stop student loan collection. (She owes over $100K in student loans.) bility benefits, and her app has finally been approved. She received a big (40K) lump sum back payment from SSA.
What are her options now? Her goal is to preserve the SSA lump sum payment. She could buy a car or a small condo.1.42 U.S.C. 407 (a) provides:The right of any person to any future payment under this subchapter shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law. Does this mean thatthe SS back payment 100% exempt property?
2. Would the SS lump sum payment be exempt from the means test as any other SS payment? 3. What are her obligations WRT the ongoing chapter 13 case?
4. May she dismiss the chapter 13 case and buy a small condo?5. May she dismiss the chapter 13 case and buy a small condo and then refile chapter 13?
-- Alik SegalAlik.Segal@gmail.com310-362-6157Cal. CD, Los Angeles

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