Social Security Disability Award AFTER Confirmed Plan

[qwerty64]

Are amended schedules required if an award for Social Security Disability is received after the payment plan has been underway? I have read conflicting opinions. Some say SSD is exempt. Some say a new Schedule I and a new calculation of Disposable Income are required.

Anyone know for sure from firsthand experience?

[BNKRPTinNC]

Wife got hers about 1/2 the way thru our plan. Since she was out of work for over a year, waiting approval, the amount that she received was less than what she would have earned had she been working. Never thought about contacting atty. and let sleeping dogs lie. Fortunately, our plan had enough "cushion" that we could absorb the substantial decrease in her monthly income without having to go back and adjust plan. It was a bit dicey but it all worked out. Also, figured since we were making less on our 1040's than when originally filed, and we could still get by, it wouldn't matter as long as it wasn't more.

[qwerty64]

Sorry, if I did not include enough detail. Our situation is opposite of yours. Sounds like you had a decrease in Disposable Income. We "might" have an increase in Disposable Income. That's what worries me as I have read conflicting views; even among attorney postings.

I have read some postings that say Social Security is specifically exempt due to language in the Social Security statutes. But, I also read the exclusion for SSD is only for sake of the Means Test and that the income should be included on Schedules I and J.

We had two sources of income when we filed and the plan was calculated on that income. We now have three sources of income with the SSD award.

If SSD is exempt, nothing to worry about. However, if SSD counts, then we will likely need to file new Schedules I and J, and increase the amount being paid into the plan each month.

Anyone have a similar experience?

[catleg]

I would go with SSDI is exempt. If you have a confirmed plan and you're current, it's unlikely that the trustee is going to upset the applecart (but your state may have a different BK "culture" than NJ).

[Pandora]

SSD is exempt from the means test however it counts on the schedules. Rule of thumb is always report any increases or decreases in income to your attorney and let him / her advise you on what is required from the trustee. Also read your confirmation order - what does it say regarding increases in income?

I'd call your attorney and ask.