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The debt(s) remain valid and collectible. The debtor might wish to try negotiating terms that would be better suit the change of their financial status, but there are not laws that protect anyone from debts owed due to a disability. In most cases the disabled person has little if any property that can be attached by creditors when it pertains to a lawsuit. All Social Security and other disability benefits are exempt to garnishment; likewise disability funds held in a separate bank account are not subject to creditor levy. It is extremely important that benefit funds not be commingled with other money in a bank account. Please be advised, disability benefits are usually not exempt when it pertains to child support, spousal maintenance or the collection of federal or state taxes.

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โˆ™ 2005-11-29 14:28:34
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Q: What happens to your debt if you become disabled?
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Related questions

Do you owe credit card debt if you become disabled?

I am answering this question for the United States. If you have debts, becoming disabled will not eliminate them. Also, it is no longer as easy to eliminate credit card debt by filing bankruptcy, which large medical bills from becoming disabled might lead to. If you became disabled because of an outside source (on the job, in an auto collision, etc.), and you accumulated debt for related treatment, you might receive a settlement to cover the expenses associated with it.

Is it true that the disabled don't have to have file for bankruptcy to get out from under debt?

No, there are no special rules for the disabled.

What is the phone number for the Debt Counsel for Seniors and the Disabled?

Debt counsel for Seniors and the Disabled was developed in 1998 and is comprised of lawyers to have senior citizens deal with debt collectors. Their phone number is 1-800-992-3275 ext. 1304.

How did Michael Phelps become disabled?

Michael Phelps is not disabled...

When did Stephen Hawking become disabled?

he got disabled at the age of 20

When did Helen Keller become disabled?

She became disabled when she was 19 months old

single disabled father grants and loans ?

i am a single disabled father looking for gov. loans or grants to get out of debt ,and start a small business.

Can a disabled ex spouse be responsible for debt which occurred during their marriage?

Being disabled has nothing to do with debt liability. If both spouses signed the contract, then both are liable. Also, there may be different debt liability in a community property state. You need to be more specific. State laws vary.

What happens when debt can't be validated?

Legally there is no debt, if it can't be validated.

If you quit working in the because you were disabled could you still claim the disabilities benefits now if you can prove you were disabled at that time?

If I become disabled I will get a check for not working

What caused Helen Keller to become disabled?

cold maybe

Does homeowners insurance pay your mortgage if you become disabled?

Homeowners insurance does not cover your mortgage if you become disabled. You would need to obtain mortgage protection insurance for that.

Are you liable for your car payments if you become disabled?


If you die what happens to your debt?


what happens to the ss I paid into while working where does it go when my husband dies I now receive his but mine is gone.?

You will begin receiving benefits when you retire or earlier if you become disabled.

What happens when parents die and their debt is more than the assets by over 60000 in credit card debt and is this debt cancelled?

the debt dies with them... you owe nothing

What happens if the President dies or is disabled?

that's what the vice president is for.

What happens to a mortgage after a bankruptcy?

What happens to a mortgage after bankruptcy depends on whether or not the debt is reaffirmed. If the mortgage is reaffirmed the homeowner continues to pay it as if the bankruptcy had not been filed, since the debt has not been discharged. If the debt is not reaffirmed, what happens to the mortgage depends on the policies of the individual lender.

Do you have to be 65 to get Social Security?

No, at 62, unless you become disabled.

What happens on binweevils if you are rude?

you get banned on bin weevils and your chat is disabled

How many people become disabled from lower back pain?

About 3-4% of adults are disabled temporarily each year by LBP, with another 1% of the working-age population disabled completely and permanently

Who would a person visit to become debt free?

There are many services a person could seek out in order to become debt free. For instance, personal finance managers and investment bankers can help a person deal with debt.

Your Direct Loan can be discharged if?

If you become permanently disabled or die. That's it.

How do you become a debt counselor?

You can become a NCR registered Debt Counsellor by completing a debt counsellor's course with a NCR accredited training provider. Once the training provider has found you competent, you can apply to the NCR to be registered as a debt counsellor. Only once you have been registered can you start taking clients for debt review. Go to for any questions about debt review or debt help.

How does the vice president become the president if the president is disabled?

they become president because there next in line a president has a vice president because if anything happens to the president the vice president knows what to do because he/she has been there the whole time and knows the responsibility of the president