On July 1, 2013, the Fourth Circuit Court of Appeals ruled that people filing for Chapter 13 Bankruptcy can exclude social security income from their "projected disposable income." In re Ranta, 2013 WL 3286252 (4th Cir. 2013). This essentially means that bankrutpcy filers do not have to devote social security income to their repayment plans, even if it means they end up with surplus income each month.
In so ruling, the Fourth Circuit joined the Fifth, Sixth, Eighth, and Tenth Circuits on this issue. States in the Fourth Circuit are Maryland, Virginia, West Virginia, North Carolina, and South Carolina.
To learn more see the blog post titled Fourth Circuit: Social Security May Be Excluded From Disposable Income in Chapter 13 Bankruptcy.