VA Disability - how is that treated?

[House4Me1Day]

My husband is disabled and his VA payments are considered non reportable and non taxable (I am assuming for IRS purposes). But how is this income considered in a bankruptcy? Is it the same as if he had a job?

Also, I am paid by the VA to take care of my husband and this income is reportable but not taxable. This program is new and not premenant. Will the trustee take this into consideration if he wants to move us to a ch13 for any reason? As of right now we are paid at 40 hours of care a week. But we receive a home visit every 90 days and this can change based on my husband and how he is doing.

I am just being a worry wart and wanted to see if anyone else has delt with VA payments and a bankruptcy. Our entire income is paid out based on the whims of congress and some unknown rater sitting in the back room. Today we are doing good but if they re-evaluate my husband at a lesser rating or the caregiver program is taken away we may be homeless. =(

M

[justbroke]

As you are already guessing, the Bankruptcy Code does not consider the taxation status of income to determine if it is exempt from the calculation of "current monthly income" (CMI) for purpose of Means Testing. However, there are some exclusions for permanently disabled veterans in the code when it comes to means testing. They are very specific, so you would need to consult with your attorney to see if the disability is related to service and fits within the exception to means testing.