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Schedule I and Catstrophic Disability Pmts

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    Schedule I and Catstrophic Disability Pmts

    Okay, so we all know that SSI gets listed on Schedule I as a form of income but that it does not count for the Means Test. My question is with regards to a private insurance policy, one for Total and Catastrophic Disability.

    A family of 3, all receiving SSI (Father, Mother, Son) which totals $4,560. In addition the wife is severely ill and had purchased to Catastrophic Disability Insurance Policies, from which she collects a total of $1,290. That's $5,850 a month plus an extra $740 in child support which is only sometimes received. Exempting out the SSI from the Means Test, gets the family below the threshold for a Chapter 7. However, if they include all of that private policy disability benefits, they have too much disposable income (even if the child support, which is rarely paid is not factored). The expenses are at least $1k grand short. Any ideas? I mean, we are talking about a family that spends nearly $40k a year in out of pocket medical expenses.

    #2
    Anyone?

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      #3
      If you include your out of pocket medical costs, that would add more than $3k/month to your expenses and put you well within the guidelines. Not sure the trustee would allow it, it's wayyyy over the IRS limit, but If you can document that you consistently spend that amount it's worth a try.
      DH laid off 3/08 | Last mortgage payment 12/09 | Filed Ch13 5/10 | Converted to Ch7 7/10 | 341 held 8/10 | AP filed by secured creditor 10/10 | Ch7 discharged & closed 11/10 | Foreclosure 10/2011

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        #4
        Yes, it would put it well over the IRS stds. I guess there is only one way to find out if it works. Worst case would be that the Trustee pressures the case to be converted to a 13, I guess. I doubt he would move to dismiss it altogether, especially when they meet the means test.

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