If wife starts to receive permanent disability payments, will that income be included when filing chapter 13? 15 Answers as of February 06, 2015

Wife and I are thinking about filing chapter 13. She became ill with an autoimmune disease. We have our last child in a private school. There are 5 months left in his junior year with one year left to graduate. We still pay on a travel trailer. Would we be able to keep him in school and keep the travel trailer?

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You should be able to keep the trailer and keep your son in school. The disability income will have an affect upon the monthly payment to the Ch 13 plan.
Answer Applies to: Minnesota
Replied: 2/6/2015
Mauritz Van Niekerk, Attorneys at Law
Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
I suggest you discuss this with your bank computer any any income in the household used to be accounted for on your bankruptcy schedules before it's in your best interest to discuss this with your bankruptcy professional.
Answer Applies to: New York
Replied: 2/6/2015
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
You should really sit down with a bankruptcy attorney well versed in chapter 13s for advice. The details of your finances need to be discussed: types & values assets, income, living expenses, types and balances of debts. When looking at chapter 13 detail numbers really matter. After an analysis of your particular situation the attorney should be able to estimate a possible chapter 13 payment plan and if there are any budget issues those should also be discussed BEFORE you decide whether filing makes sense. Any income received by members of your household factors into the calculations of chapter 13 payments. The educational expense for children under 18 years of age are capped. Perhaps chapter 7 is the better solution. Please see a local attorney for advice.
Answer Applies to: California
Replied: 2/5/2015
Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
School yes, travel trailer (maybe) Her income will count for a portion, but you should consult with an attorney to discuss how her income is calculated.
Answer Applies to: Florida
Replied: 2/5/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
I wish you had specified where this disability income might come from. Social security benefits would not need to be included in a Chapter 13 payment. However, to pay for non-necessary expenses, such as a travel trailer or private school, you may have to make some sacrifices if pursuing Chapter 13, which may result in offering to contribute these benefits to the bankruptcy Plan. If the disability benefits come from a source other than social security, such as workers compensation, private insurance, or other program, the strategy will have to be different. The quality and experience of your attorney will be invaluable in developing a Plan that will work to accomplish all your goals.
Answer Applies to: Nevada
Replied: 2/5/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    I don't know enough about your case. But you can keep the trailer as a result of the 2005 amendments to the bankruptcy code. See a lawyer, you may find one at nacba.org.
    Answer Applies to: California
    Replied: 2/5/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Yes her income will be included and generally the trustees will allow a child to stay in private school and the travel trailer if you are not paying 100% of your unsecured debts then a luxury item is more difficult to explain.
    Answer Applies to: New York
    Replied: 2/5/2015
    Wellman Law LLC
    Wellman Law LLC | Keith A. Wellman
    There are many more facts that would be important to know and many questions that need to be asked to properly advise you. Most Bankruptcy attorneys allow most or all of their fees to be paid through a Chapter 13 plan, so I wouldn't pull my hair out thinking I could handle an even mildly complex Chapter 13 case as a non-attorney. That being said, to at least address your questions, all income is "counted" in some way when filing bankruptcy. Also, it may be possible to keep almost any property if you can afford to pay it in your plan and the Chapter 13 Trustee in your jurisdiction does not find it to be in bad faith (e.g. not paying anything to unsecured creditors while trying to keep a "toy" may be hotly contested). As for the private school aspect, the same rational applies: it depends on the Trustee and Court in your jurisdiction and other facts, such as whether you're proposing to pay anything to unsecured creditors. There are many other facts that could be relevant as well, which is why it is again highly recommended that you consult an attorney that appears to understand and enjoy working out the particulars of your situation.
    Answer Applies to: Kansas
    Replied: 2/5/2015
    Ronald K. Nims LLC | Ronald K. Nims
    Payments from social security and retirement plan disability programs are exempt under Chapter 13, payments from a disability insurance policy are not. There is no exemption in Chapter 13 for private school tuition or travel trailer payments. In order to determine whether you'll be able to keep these up in a Chapter 13 depends on your budget.
    Answer Applies to: Ohio
    Replied: 2/5/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    This depends on lots of specific facts which you have not reported. retain a skilled bankruptcy lawyer. It's almost always worth the expense. Good luck.
    Answer Applies to: Wisconsin
    Replied: 2/5/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    You are actually asking 3 separate questions: (1) will disability payments be obligated for debt payment in your chapter 13 budget; (2) can you keep the travel trailer; and (3) can you keep your child in private school? None of those questions is simple to answer. If you haven't hired an attorney to help you with your chapter 13, you should seriously consider it. Otherwise, the bankruptcy trustee will answer each one in the way that disfavors your interests. Chapter 13 is complicated and those who attempt it without an attorney usually fail, even if they are lawyers. It will come down to a negotiation with the trustee, and an experienced bankruptcy attorney will get you a much better result than you can get on your own. Oftentimes, the attorney fees don't even cost you more because they can be paid at the expense of your unsecured creditors.
    Answer Applies to: Oregon
    Replied: 2/5/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    Her disability would be included as income. You will probably be able to keep your son in private school but you may see an objection to the travel trailer. It all depends on your budget and the amount you are paying back to your creditors.
    Answer Applies to: Virginia
    Replied: 2/5/2015
    Stephens Gourley & Bywater | David A. Stephens
    The income will be included. You can usually continue to pay for private school. The travel trailer may bring an objection, but if not you can keep it as long as you continue to pay for it.
    Answer Applies to: Nevada
    Replied: 2/5/2015
    Wink & Wink
    Wink & Wink | Gigi Wink
    It depends on what type of disability. If Social Security Disability, then it will not count as income (though must still be reported), if it is private disability then it does count as income for the means test and will be included in the Chapter 13 analysis.
    Answer Applies to: Colorado
    Replied: 2/5/2015
    The Law Office of William Waldner | William Waldner
    Your wife's income at the time of filing for bankruptcy is used to determine disposable income and to calculate the means test. Your monthly chapter 13 payments are based on your disposable income. If you generate additional disposable income after filing a case it is very unlikely that will impact your payments. If your case is filed properly you will keep your trailer and pay for your sons private school.
    Answer Applies to: New York
    Replied: 2/5/2015
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