society security income question.

[DYLAN150]

It does not count on the means test right? But it does count as income and must be used as income when figuring the payment on the chapter 13?

[lrprn]

It does not count on the means test right? But it does count as income and must be used as income when figuring the payment on the chapter 13?

Let' s look at the Means Test B22C form used to file Ch 13 at http://www.uscourts.gov/rules/BK_For...22C_0108v2.pdf . Check Line 9 - here's where it specifically states that your social security income is *NOT* to be included as a source of income - "Do not include any benefits received under the Social Security Act...."

However now let's go look at the required Schedule I Current Income of Individual Debtor(s) form at http://www.uscourts.gov/rules/BK_For...006I_1207f.pdf . Here on Line 11, Social Security income *IS* included as income.

Your monthly Ch 13 payment is based on the disposable income calculated on the Means Test or on Schedule I minus J (Current Expenditures of Individual Debtor(s). One excludes social security as income and one includes it as income. That's why you are confused about this - it is confusing! (Thanks for passing this badly written bk law, 2005 Congress.)

The problem is that the local bankruptcy courts are not consistent whether they accept your disposable income as what is calculated on your Means Test or what is calculated by subtracting Schedule I and J. Your lawyer will need to help you sort this out to know which version of disposable income is the one used in your local court.

[tigergem]

I had this same dilemma. But since I was under Means, it didn't matter. And since Social Security is my sole source of income that I am basing my plan on, it didn't matter. I just went with the flow of the forms, and it all worked out just fine.

[DYLAN150]

Irprn: Thank You, wow it is confusing.