In bankruptcy, you have to pass a means test to show you just don't have enough to pay off debts (hence a Chapter 7 and not a Chapter 11 or 13). Social security is not counted as disability and will not be garnished. You have to prove your disability payment (lump sum payment) is from Social Security so you should segregate it from the remaining accounts you have. It may mean opening a savings account that only has the lump sum payment but the timing should not impact the fact it is protected by Section 407 of the Bankruptcy Code. Sounds like the individuals you spoke with are not that experienced in bankruptcy law. Go to the state bar and ask for a listing of special certified bankruptcy attorneys and then research with the bar to see if any of those have been disciplined. Narrow it again down by experience level and see if there are any cases out there with similar patterns as yours.