can creditors access social security disability income (which is federally protected) if you invest it?

Question

I dont have a job, my only income is SSDI. I had my car reposessed. My lawyer actually told me to ignore them because they cant get my money, they cant do anything even if they take me to court. But now that I want to ivest my money into the stock market.. I am worried that somehow they can 'get me'. Are these assets still protected because they came directly from SSDI?

ok so we are clear that my initial investment is protected, and its only the profit that can be targeted. Now, since these disabilities are considered to not be income, and the profit I make from these investments are like less than 500 dollars per year.. Whats the likelyhood the court will even bother?

Answer 1

I do not think investments are protected. You have to pay tax on the profits, so I think it would fall under "other income".

Answer 2

Your SSDI income is protected, but any other income you might make, as in profits from investing, is not. The money that you invest is still safe. It is the profit, if any that you recieve that becomes accessable to any creditors.

Answer 3

If I remember right (all us old farts say that in case we're wrong) the investment is protected, however they are able to attach any profits.

Answer 4

You could invest offshore. For example here is some info on the cayman stock exchange:

http://www.offshorelegal.org/offshore-banking/cayman-islands-offshore-banking/cayman-stock-exchange-csx.html

Here is another article specifically on offshore investments.

http://www.offshorelegal.org/offshore-banking/cayman-islands-offshore-banking/offshore-investment.html

Offshore banking / investing will protect your money from anyone unless you are a criminal (which it doesn't sound like you are !)

I recommend Panama myself.

I hope this helps.