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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am widow of DAV I get a monthly check tax free. I have made

Resolved Question:

I am widow of DAV I get a monthly check tax free. I have made some bad choices and I have to file bankrupsy. Will my benefit check be counted in monthly total for filing bankrupsy? I read couple of places it can't be counted and is protected under US Code Title 38 and 530. It is not considered income. Is this true. Ina Nunnery
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

Are you planning on filing a Chapter 7 or a Chapter 13?

Do you want to know if the DAV benefit is included in the "Means Test"?

Customer: replied 6 years ago.
I am going to file chapter 7 if I can...Will my DAV check be included in total income for bankruptsy? My other check is widows annuity from FAA. I am concerned about my DAV benefit check. If I don't have to count that I will be ok. Please let me know, ASAP... Thanks Ina Nunnery
Customer: replied 6 years ago.
Has anyone answered my question yet??? Ina Nunnery
Expert:  cfortunato replied 6 years ago.

All income is included for the "Means Test" - which determines whether a debtor's income is low enough to qualify for a chapter 7 - except Social Security and Unemployment income. This means that DAV income is included.

It is true that DAV benefits are exempt from collection for most debts. However, when a debtor files a Bankruptcy, they are - in a sense - giving up this right to an exemption, as DAV income is included for Bankruptcy filing purposes.
However, if the debtor has extraordinary, allowable expenses, such as high medical bills, a debtor may be able to file a Chapter 7, and will more certainly be able to file a Chapter 13, in spite of an income higher than what the Means Test allows

 

I think this is what you wanted to know. If not, please let me know.
Thank you!

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