Has the new bankruptcy law extended protection for certain types of income?
Yes. The new bankruptcy laws now fully protects: 1) Social Security benefits,
unemployment compensation and local public assistance payments; 2) veterans’
benefits; 3) disability, illness and unemployment benefits; 4) payments
under a stock bonus, pension or profit sharing plan, annuity or similar
plan on account of illness. Of course, to claim the bankruptcy exemption,
you must file bankruptcy otherwise your state law governs their protection
and your state protection may be inadequate. But bankruptcy can be your
right option when you anticipate future income from these sources which
lack state protection.