Q&A: I read the subject of bankruptcy and found that creditors cannot go after your Social Security?
Question by Enigma: I read the subject of bankruptcy and found that creditors cannot go after your Social Security?
and other public retirement funds. Does the public retirement funds include military retired pay? If the information is correct, why would seniors receiving those checks even bother filing for bankruptcy? Please explain.
Best answer:
Answer by WRG
That is true and I’m pretty sure it is also true about military retirement.
Seniors with those sorts of income don’t like getting called by creditors any more than you do and they may have other property they won’t to protect.
What do you think? Answer below!
Yes, public funds include military retired pay. They’d bother filing b/c they probably have assets against which a variety of creditors may have a claim, and there are all kinds of rules under the law of creditors’ remedies – different in each jurisdiction – which describe who can lay what sort of claim in what priority against which type of asset. For instance, if you owe money on a car, dealer can’t come and repo the contents of your house. That sort of thing. This is where the lawyers in league with the banks have a field day – ka-ching$ !
so they don’t lose a house, a car dentures etc etc etc