Filing for a Chapter 7 bankruptcy may have been one of the most difficult decisions you've ever made. When a customer files a Chapter 7 bankruptcy, their creditors have rights. After all, their financial situation will likely be affected by the bankruptcy. Because of this, creditors and bankruptcy trustees can file complaints against you and your bankruptcy filing. These complaints are also known as adversary proceedings. Therefore, it's important to keep a close eye on all mail and correspondence you receive after you file for bankruptcy.

Living on social security disability payments as an exclusive form of income means you have little margin for financial emergencies. Unexpected expenses and life circumstances can quickly overextend that income, and you can easily become burdened by debt. Payday loans and debt settlement programs can sometimes make matters worse if you are unable to keep up scheduled payments. Is Chapter 7 bankruptcy a viable option for you? If you declare bankruptcy, can you keep your disability payments?

If you are planning on filing for Chapter 7 bankruptcy in the near future, it's important for you to first learn how cash windfalls may affect your situation. Cash windfalls can include a lot of different things and can negatively affect your financial situation when filing for Chapter 7. Here are two important things to know about this. Cash Windfalls Within Six Months Count When you file for Chapter 7, you will qualify as long as your income is less than the median income in your state.