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Long Term Disability as Income

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    Long Term Disability as Income

    There is a good chance that my wife may have to file for bankruptcy on her own without me. My question is my only source of income is payments from my employers long term disability policy which half of is non taxable. Does this have to be entered as income in the calculation of the means test since it is technically proceeds of an insurance policy issued to me and not my wife. If it can be included my second question is on the form where it says amount spouse does not contribute regualrly to the household bills. I have a severe medical condition and spend a lot of money on my medical care. Can that all be deducted from the monthly family income?

    #2
    It looks like you will have to list the income in line 10. It pretty much states that social security and war crimes compensation only can be exempted as income.

    It also looks like you can add the expense in line 31 providing you have the proof, dr. bills, etc.

    Comment


      #3
      I understand you should include total household income, and total household bills, even if only 1 spouse is filing. Things like medical bills aren't covered by the IRS standards-they are what they are. As long as you can document the amounts, it should not be an issue.

      In a certain sense, you are both filing but only her name is on the petition.
      Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

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