Veteran with a few questions

[ohsobroke]

Good morning. I currently have at or around 30k or more in debt. I do not own a home and I do not own a vehicle. I'm within the 20-25 age range. I am a full-time student who is unemployed and living off of monthly VA disability and Montgomery GI Bill payments. I have not made secured or unsecured payment in over a year. I lost my job and resorted to school.

My question is this, I am currently separated (as-in completely living apart from spouse and awaiting the one year mark to file for divorce) thus I can file for bankruptcy without the spouse being involved, great. For the means test will my monthly GI Bill income be considered? I'm currently receiving $200 a month under the Supplemental Nutrition Assistance Program, how about that being counted (GI Bill is NOT counted under the SNAP program, only disability payments)? With the above scenario do you think that filing pro se in North Carolina would be within my best intentions? Thank you for reading and for any advice that you may have.

[AngelinaCatHub]

You must list all income, however it is all exempt. Any pension, welfare, insurance proceeds are exempt. You would be a simple case for a 7. 'Hub

P.S. you grant for school is exempt as long as you are using it for school.

Edit: More info; http://www.gibill.va.gov/training/Pr...n_Benefits.pdf

[Heli]

First off, thank you for your service.

Talk to a local lawyer and get a free consult, If I remember correctly there is an exclusion for Disabled Vets from the Means Test which is why I suggest getting a consult.

[Michigan1951]

My husband is a 100% Disabled Veteran, but it did not happen in a war scenario. It is service related health issues. In the means test, our lawyer only listed the military retirement, and left out the VA disability compensation, and also the Social Security Disability payments. So is the social security and VA left out of the median too? He qualified hands down for the means test for C7. I have heard that social security can't be used in Schedule J for DMI either...........

Any input on this would be helpful for all Veterans. Thank you.

[Heli]

Some further info ;

For purposes of the Means Test exemption, just being a disabled veteran in and of itself is not enough. Not only must the person be a disabled veteran (as defined in 38 USC 3741(1)),

[liboton21]

My husband is a 100% Disabled Veteran, but it did not happen in a war scenario. It is service related health issues. In the means test, our lawyer only listed the military retirement, and left out the VA disability compensation, and also the Social Security Disability payments. So is the social security and VA left out of the median too? He qualified hands down for the means test for C7. I have heard that social security can't be used in Schedule J for DMI either...........

Any input on this would be helpful for all Veterans. Thank you.

Wow, if VA disability compensation is not included in the means, then I am under the California median income. Does this apply in CA?

[Michigan1951]

Like I said with me earlier, my husband's military retirement was listed as income only. It comes to about 14k or so (gross). The median for 2 people in Michigan is 53,575K, I do beleive when we filed in Sept. My lawyer said in essence, we don't have any DMI when you look at Social Security, VA compensation, and even the military retirement since it all is exempt income, according to the means test.But, it is a gray area on this when it comes to schedule J though. Since Social Security and VA compensation cannot be used in the means test, then why is it being considered in the schedule J for DMI when the money is exempt in the first place. The Trustee cannot force us into a ch13 either. It is going to be how our trustee sees things for us right now in regards to the schedule J and DMI.

Good luck. I truly appreciate other veterans and their families on this forum, as we are unique with our income for sure........

[Michigan1951]

Oh, VA compensation is a goverment monthly income so it would be for any state and/or any Veteran of any state, I would say. Check it out with your state!!

[JEM]

My husband gets $490/mo as a VA disability payment.

So it will be figured like any other income UNLESS the debt was accumulated when he was in the military? (Which it wasn't)

[Michigan1951]

Not in the means test.

[JEM]

Not in the means test.

Well, we're under the median income with or without it.

But if they use it to figure a DMI--it would obviously make a pretty big difference.

I thought we had a pretty "uncomplicated" situation, I think I may have been wrong.

[Michigan1951]

And, Heli, I think Libton21 from CA, should know that yes you list it in the means test but it will be exempted back out along with Soc. Security is.
Not having to take the means test all together is connected with what you said, which is really not the same thing we were talking about.

I did recheck our means test and it listed VA comp, but was exempted right back out.
AngelinaCat said it correctly the first time!!

[JEM]

And, Heli, I think Libton21 from CA, should know that yes you list it in the means test but it will be exempted back out along with Soc. Security is.
Not having to take the means test all together is connected with what you said, which is really not the same thing we were talking about.

I did recheck our means test and it listed VA comp, but was exempted right back out.
AngelinaCat said it correctly the first time!!

When it's said to be "exempt"---what do they mean by that in this case?

[Michigan1951]

You have to list it, but it won't end up in the final income total when completing the test. Social Security is also exempt, along with VA compensation, in my case. In other words, it can't be included in the income total used to determine if you pass the Means Test or not.

Maybe AngelinaCat could do a better job explaining the Means Test and exempt income, if my explanation isn't clear enough!

To me, the Means Test is our first easy hurdle to clear with our exempt income, as the Schedule J is the one that really comes to play next. And, I think it depends on the state, district, trustee, etc. and your own personal debts. Right now the Va Compensation is included in the Schedule J. There is a gray area as if Social Security can be used in schedule J or not, since the DMI is used to determine if you go into a chapter 13 or not. And, Social Security is exempt income! So why would it be put back in the schedule J as DMI, but it is not included in the Means Test. There is argument
already brewing over all this so I say it depends on your particular judge, maybe to decide. Because how can they use Social Security money that is exempt income as money in a chapter 13 plan. This same Soc. Security income is exempt from the unsecured creditors in the first place so why put it back into Schedule J to be in a chapter 13 monthly plan to the same unsecured creditors...Go figure?

I am not a lawyer, as you can see. Good luck to you as well.

[JEM]

You have to list it, but it won't end up in the final income total when completing the test. Social Security is also exempt, along with VA compensation, in my case. In other words, it can't be included in the income total used to determine if you pass the Means Test or not.

Maybe AngelinaCat could do a better job explaining the Means Test and exempt income, if my explanation isn't clear enough!

To me, the Means Test is our first easy hurdle to clear with our exempt income, as the Schedule J is the one that really comes to play next. And, I think it depends on the state, district, trustee, etc. and your own personal debts. Right now the Va Compensation is included in the Schedule J. There is a gray area as if Social Security can be used in schedule J or not, since the DMI is used to determine if you go into a chapter 13 or not. And, Social Security is exempt income! So why would it be put back in the schedule J as DMI, but it is not included in the Means Test. There is argument
already brewing over all this so I say it depends on your particular judge, maybe to decide. Because how can they use Social Security money that is exempt income as money in a chapter 13 plan, others are arguing..........

I am not a lawyer, as you can see. Good luck to you as well.

Actually--that's what I was looking for.

When I did the means tests ---I did it with the VA disability income--and we passed. So obviously we'd still pass WITHOUT IT.

But for us, it's a little closer when I do schedule J. NOT having the VA $ would obviously make a BIG difference in that case.

So it really is a state to state--district to district issue?

Any idea where I might start looking to see how this would be viewed where I'm at? (Texas)

Thanks for answering all my questions BTW!