Means test question

[bkrelief22]

I'll try to make this short. My hubby is a retired policeman with a monthly pension. I'm on Social security disability. That is our only income. He has been unable to get a job for sometime...which is why we need to file. lawyers paralegal said that the social security is not entered into the means test. Our income falls below the means test number for KY so I'm hoping we can file Ch.7. We have all unsecured debt except a car loan. We are current on that and will reaffirm. Will the Social Security income be counted to determine if we file CH 7 or 13?
Also, Social Security and retirement pensions for police officers are KY exemptions. The attorney said that the pension was exempt but still counted as income. So, thus my confusion. Thanks for all your help!!!

[lrprn]

The current version of the Ch 7 Means Test at http://www.uscourts.gov/rules/BK_For...22A_0108v2.pdf states in Part II Line 10 about income calculation, "Do not include any benefits received under the Social Security Act or payments received as a victim of a war crime, crime against humanity, or as a victim of international or domestic terrorism."

That means that your SS benefits are NOT included in your income calculations. However, your husband's disability benefits will be included.

Remember however that his disability benefits are completely exempted (protected) under Kentucky's bk exemptions - see http://www.bankruptcyinformation.com/KY_exemp.htm. That means the trustee cannot take any part of his income, effectively removing it from any disposable income calculations and making it very unlikely you two can be pushed into Ch 13 no matter what his disability income is.

Set up appointments with 2-3 additional experienced bankruptcy lawyers and explain your circumstances. Given what you've told us here, you two are likely to qualify to file Ch 7.

[bkrelief22]

That means that your SS benefits are NOT included in your income calculations. However, your husband's disability benefits will be included.

Remember however that his disability benefits are completely exempted (protected) under Kentucky's bk exemptions - see http://www.bankruptcyinformation.com/KY_exemp.htm. That means the trustee cannot take any part of his income, effectively removing it from any disposable income calculations and making it very unlikely you two can be pushed into Ch 13 no matter what his disability income is.

Thanks so much for the info!! I think I understand it. His income is actually not disabiliby but a retirement from being a state police officer but I think it's the same thing. If my disability isn't counted and they can't take any of his income as disposable...then we should be filing bk7. Right? I will check it out though. thanks again for your help.

[bkrelief22]

Sorry for the double post...still learning how everything works.