What am I suppose to do to my veterans benefits on bankruptcy case? 13 Answers as of February 28, 2014

A lot of talk that VA Benefits are included in the means test on line 10 as Social Security is not. However, all indications from the Bankruptcy Code and VA Code indicated that they cannot. So what is a person suppose to do in this case?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Include it, but the court cannot dismiss or convert your case if you are disabled. (Title 38, Section 3741(1)) and the debts were incurred primarily on active duty and you were on active duty within the last 540 days for at least 90 days.
Answer Applies to: California
Replied: 2/28/2014
Stuart P Gelberg
Stuart P Gelberg | Stuart P Gelberg
VA benefits are not SS and are included on the means test.
Answer Applies to: New York
Replied: 2/28/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
Unless you meet the narrow requirement as a disabled veteran whose debts were made while on active duty, you should include your VA disability. Frankly, I wouldn't sweat this requirement and I would always include the VA disability benefits so you are not subjected to a full audit over when your debts were made. Most of the time, I can get my clients through the Means Test. Experience does help.
Answer Applies to: Nevada
Replied: 2/28/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Social Security Benefits (by law) are not income for purposes of the Means Test. VA Benefits do not enjoy the same status.
Answer Applies to: Colorado
Replied: 2/28/2014
Law Offices of Daniel J Winter
Law Offices of Daniel J Winter | Daniel J Winter
Generally, veterans benefits are included in your income; that doesn't mean you'll automatically fail the means test. You should contact an experienced attorney to do the means test properly to see. Even if you are over the median income, you can still pass the test and qualify for Chapter 7 Bankruptcy.
Answer Applies to: Illinois
Replied: 2/28/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    VA benefits are included as income under means test.
    Answer Applies to: New York
    Replied: 2/28/2014
    Kirby G. Moss PC | Kirby G. Moss
    My understanding is that VA benefits are included on the Means Test per 11 USC Sect. 101(10)(B) of the Bankruptcy Code(only social security and couple other things not relevant excluded.)
    Answer Applies to: Indiana
    Replied: 2/28/2014
    Law Office of Marlin Branstetter
    Law Office of Marlin Branstetter | Marlin Branstetter
    Veterans benefits are income and should be listed on the means test.
    Answer Applies to: California
    Replied: 2/28/2014
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    The Code indicates that they cannot what? Just because something is included in the means test doesn't necessarily result in being ineligible for Chapter 7. You ask what you are "supposed to do". My suggestion would be to have a consultation with an experienced bankruptcy attorney in your state.
    Answer Applies to: California
    Replied: 2/28/2014
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    VA Benefits are included in the means test even though exempt from creditors.
    Answer Applies to: Florida
    Replied: 2/28/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    There are only a very few, very specific things that do not have to be included in the means test. Everything else must be listed and counted. The means test is complicated, and you could do yourself a favor and hire an experienced lawyer to guide you through the bankruptcy process.
    Answer Applies to: Colorado
    Replied: 2/28/2014
    Michael B. McFarland, P.A. | Michael B. McFarland
    VA benefits are currently included in the means test calculation - at least in Idaho - as are Railroad Retirement benefits- even though they (like Social Security) cannot be attached. It would be advisable to consult with an experienced bankruptcy attorney in your area for assistance in doing the means test calculations.
    Answer Applies to: Idaho
    Replied: 2/28/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    If your VA benefits are for disability that occurred while you were on Active Duty and the majority of the debts that you are seeking to discharge in bankruptcy were incurred during that time on Active Duty or performing Homeland Defense, then you would not be required to complete Form B22 "Chapter 7 Means Test" and your VA disability may be fully exempt or partially exempt depending upon your state's bankruptcy exemptions. You would be required to include it under Schedule I. If your VA disability and incurring of debts do not meet those requirements then you will likely need to include it as income for purposes of both the Means Test and Schedule I.
    Answer Applies to: Indiana
    Replied: 2/28/2014
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