Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.
1) Are you asking about a Chapter 7 or a Chapter 13 Bankruptcy?
2) Are both spouses living together in the same household?
7 or 13 ..2) yes
Thank you for your response.
For both a Chapter 7 and a Chapter 13 Bankruptcy, a non-filing spouse's VA Disability income is included on Schedule I and also on form 22A/22C to the extent that the income is contributed to the household.
In other words, VA Disability income is not treated in the same manner as income from the Social Security Administration.
This applies to spouses who are living in the same household.
so then va Compensation in bankruptcy is income or compensation for loss?
Are you asking about a monthly VA Disability payment? I am not sure what you mean by a compensation for loss.
yes , I have been told by no less than 7 attorneys according to code the compensation is not income therefore not taxable therefore is compensation correct or not?
VA Disability compensation is included as income for Bankruptcy filing purposes. Absolutely the only income that is not included is Social Security Administration compensation.
thanks...so for the means test its to be factored in...?
Yes - compensation from the VA - including disability compensation - must be included on form 22A (Means Test).
However, if any of that money is not contributed to the household (eg. money is sent to support a dependent who does not live with the couple), that amount does not get included for the Means Test.
So a non filing spouse who has their own debts and no other debt would be required to contribute part of their compensation to satisfy the filing spouse debts in a 13---
The non-filing spouse's payment of debts in his or her name only would not be included for the Means Test - as that would be income that is not being contributed to the household.
Now that makes more sense...thank you for your time.. but there still seams to be a wide range of opinions ... I have a little more understanding...that is all for now.
I had cancelled after my question but was charged an additional amount anyway.
So as a follow up to my original question ...Is the marital adjustment available for means test , when non-filing spouse has only va compensation and does not use all monies for household expenses but has credit card bills in their name only , etc .?
Yes - the marital adjustment is available to subtract any income the non-filing spouse earns that is not contributed to the household. Any income the non-filing spouse receives that is not contributed to the household qualifies for the marital adjustment. This includes VA compensation.Additionally, the marital adjustment is available whether or not all of the debts belong to the filing spouse only, whether there are any debts that belong to the non-filing spouse only, or whether there are any debts that belong to both spouses.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).