Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
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"?
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
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