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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 19625
Experience:  B.A.; M.B.A.; J.D.
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I am considering filing for bankrupcy chapter 7. I am recieving

Customer Question

I am considering filing for bankrupcy chapter 7. I am recieving $941.00 monthly in service connected compesentation. How does this compensation affect qualifying our income for the means test for bankruptcy?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 6 years ago.

Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

 

Could you explain a little more?

 

What is the gross monthly income for your household?

 

What exactly is this service connected compensation? Is this part of social security compensation?

 

How many people are in your household?

 

Customer: replied 6 years ago.
Relist: No answer yet.
Expert:  Phillips Esq. replied 6 years ago.

You need to respond to my Information Request:

 

Could you explain a little more?

 

What is the gross monthly income for your household?

 

What exactly is this service connected compensation? Is this part of social security compensation?

 

How many people are in your household?

Customer: replied 6 years ago.

This is a service connected compensation from the VA. $941.00 per month

I also receive social security $1510. per month

My wife is salaried at $50,000. per year.

There just the 2 of us in the household.

Expert:  Phillips Esq. replied 6 years ago.

Thank you for the information.

 

Are you a disabled veteran?

Customer: replied 6 years ago.
Yes, I am considered 50% disabled
Expert:  Phillips Esq. replied 6 years ago.

Thank you for your quick response.

 

If you incurred the debts primarily when you were in active duty, the Means Test does not apply to you--you are exempt from the Means Test.

 

If you do not qualify under the disabled veteran exemption, then your VA compensation would be included in your income to calculate the Means Test, but your Social Security monthly payments would not be included. Your wife's income alone would put you over the median income for your household size in Michigan, which is currently $49, 919.00. Then, if your VA compensation is added, it would be very difficult for you to qualify for a Chapter 7. Again, you do not need to do any of these calculations, if you meet the disabled veteran's exemption to the Means Test.

 

Means Test Form:

 

http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK%20Forms%201210/B_22A_1210.pdf

 

Median Income Table:

 

 

http://www.justice.gov/ust/eo/bapcpa/20101101/bci_data/median_income_table.htm

 



Edited by AttorneyPhillips on 12/3/2010 at 3:24 AM EST