Are veteran’s benefits and/or social security benefits completely exempt from being considered as income when filing for Chapter 7 bankruptcy?

Get Legal Help Today

 Secured with SHA-256 Encryption

Are veteran’s benefits and/or social security benefits completely exempt from being considered as income when filing for Chapter 7 bankruptcy?

Can either prevent you from being eligible for filing for Chapter 7 as per the means test?

Asked on September 4, 2011 under Bankruptcy Law, Michigan

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

There are two different "tests" that use income to determine eligibility to file a Chapter 7 case.  One is the so-called "means test" which uses income received in the 6 calendar months prior to filing the bankruptcy case.   The other is just the standard "current" monthly income and expense schedules (Schedules "I" and "J" to the bankruptcy petition).

ALL income gets analyzed on Schedules "I" and "J" and can affect eligibility.  Which and how much will depend on the Judge in your case and the court decision in your jurisdiction.

Social Security income is excluded from the Means Test, so you do not need to include it on that "test".   I think veterans benefits get included either way.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

There are two different "tests" that use income to determine eligibility to file a Chapter 7 case.  One is the so-called "means test" which uses income received in the 6 calendar months prior to filing the bankruptcy case.   The other is just the standard "current" monthly income and expense schedules (Schedules "I" and "J" to the bankruptcy petition).

ALL income gets analyzed on Schedules "I" and "J" and can affect eligibility.  Which and how much will depend on the Judge in your case and the court decision in your jurisdiction.

Social Security income is excluded from the Means Test, so you do not need to include it on that "test".   I think veterans benefits get included either way.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption