Still trying to understand...

[bkrelief22]

Can anyone explain to me how social security disability can b e used as disposable income?? My husband has police retirement which is exempt but must be counted as income. I thought Soc. sec. disability which I have could NOT be used as disposable income.

My soc. sec. which had disposable income pushed us into a ch 13. I'm just still trying to figure it all out.

If anyone has had experience with this, please let me know.

Thanks so much
bk22

[rfassett]

No experience here, but it seems like you are confusing tax law with bankruptcy law. These are two mutually exclusive areas of the law in spite of the fact that they refer one to the other.

[bkrelief22]

Thanks for your reply...actually I'm not confusing the laws. Even one of the moderators said because they were exempt, they didn't think there was anyway to go to a ch13 because due being exempt, it couldn't be taken by the trustee as disposable income...I'm just trying to understand how it happened an wondered if anyone else has this excperience.

Thanks again for responding.

bk22

[AngelinaCat]

I am confused myself. In the nolopress book on BK 7, on page 20 is a sidebar titled: Income You Don't Have to Include reprinted below:

Your current monthly income includes income from
all sources, except:

payments you receive under the Social
Security Act (including Social Security
retirement, Social Security Disability
Insurance, Supplemental Security Income,
Temporary Assistance for Needy Families, and
possibly state unemployment insurance)

payments to you as a victim of war crimes or
crimes against humanity, based on your status
as a victim of such crimes, and

payments to you as a victim of international
or domestic terrorism.

If you have an attorney, I would take this and ask.

Good luck.