Are veteran’s benefits and/or social security benefits completely exempt from being considered as income when filing for Chapter 7 bankruptcy?
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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 12 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 12 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
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