Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
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Question: I'm 100% Service Connected Disabled. I get my VA Disability Income of $2,673.00. I also get Long Term Disability of $1,477.42. I need to know if there is a CASE LAW TO JUSTIFY THAT I'M EXEMPT when calculating my income on the Means Test and the Median Family Income Test for filing Bankruptcy. I would like to file a chapter 7.
Response: You would not be subject to Means Test if you are a disabled veteran as defined in 38 U.S.C. Section 3741(1)) if you accumulated your debts primarily when you were on active duty as defined in 10 U.S.C. Section 101(d)(1)) or while you were performing a homeland defense activity as defined in 32 U.S.C. Section 901(1)). That is, you would be exempt from the Means Test if you meet the aforementioned requirements.
I did not recieve my VA Disability while in the service. But when I got out. I have PTST from when I served in the military. Would this also exempt me from the means Test and the median Family test?
Response: Yes, so long as your debts were mainly accumulated when you served in the military.