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I’m a Disabled New York Firefighter and Need to Protect My Payments. – Frank

“Dear Steve,

I am a New York Firefighter retired on disability. I receive City and State disability benefits as well as SSI. This is my only sources of income and is non-taxable and judgement proof. Due to the recent real estate bubble, I am in a situation where I need to file a Chapter 7 bankruptcy.

Is there any situation where my judgement-proof disability money can ever become NON judgement-proof? For example, I deposit my disability check into my checking account (i know they can’t touch this), I then take money out of my checking account in the form of cash; can a Trustee take this cash? What if I buy stocks with my disability money, can a Trustee take that money? What if I loan my disability cash to a friend or business, can a Trustee take that money?

Ultimately, if I take my disability money and put it in different places like stocks, investments or loan it out, is this money still protected from lawsuits, judgements and bankruptcy?
Thank you.


Dear Frank,

Rather than give you general information, why don’t you contact my bankruptcy attorney friend in New York and ask him directly. You can reach Jay by clicking here.

if you don’t like him for some reason, there are plenty of others to ask.

You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact Damon Day.


Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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