Chapter 13 & social security disabilty

[grndmom53]

Ok, if you are approved for social security disability while in a chapter 13, does it count as extra income or is it exempt from means testing ? I thought I read that social security is exempt, just need to know if social security disabilty is exempt.

thanks

[woeisme]

It's exempt in the means test, but is included in the schedules for determining your plan payments. So you can exclude it as income to get into a CH 7, but in a CH 13, you have to fork it over. Totally sucks. At least this is the case with our social security survivor's benefits that my step-son gets, and is the case with my husband's disability payments, although he was a state of Ohio employee so his disability pay comes from the state rather than SS.

[grndmom53]

I think I m going to be sick, I did call our attorney & she said basicly the same thing. His disbaility is to start in December, just monthly checks, no back pay. I dont even want to think how much our payment will be with the addded income.

I am sure we will now be in a big payback. I wonder if we are to tell the trustee or will our attorney let them know??

Thanks!