Ca Sdi

[EZDUZIT449]

Is California state disability insurance exempt. This is not SSI, it is temporary state disability insurance that is good for one year, then you are kicked off to file for SSI.

Anyhow been disabled for 3 months now and will be for another 6 to 9 months. Needless to say my world has come to an end and no CC have been paid for 2 months. I will not make it at this rate for another 9 months. I am positive in the next few months I will have no choice but to file for BK.

But I keep reading that disability payments are exempt.

[ilovemycaitybug]

I believe you are correct in that your income cannot be garnished because those types of payments are exempt (please someone correct me if I'm wrong). But from what I gather from your post, you will be returning to work in about a year? Then you will have non-exempt income and they could come after you. Have you tried to contact your card companies? Do you have the insurance that allows you to not make payments in times like these?

[EZDUZIT449]

I have no insurance for disability or the credit cards. From reading I get the impression they dont use this as income when figuring your means test or on your scedules for proof of income. But there is no way I could pay back the compounding fees and interest ect,,, after 9 months out of work, so I am planning to file for BK in a few months thanks for your time

[lrprn]

EZ, I removed the duplicate thread you posted in another folder. It's best to keep all your answers in one thread.

[JRScott]

I'll look in my book when I get home and see if it says.

[EZDUZIT449]

thanks JRscott, getting used to posting here, ect. Never been on a forum before

[EZDUZIT449]

JRScott, is the book you use NOLO. Seen this posted. Think I will get a book and start educating myself untill time to file.

I have no assests and own no property, so should be able to file pro se.
CC and personal loan come to $25,000. The car payment that I hope to keep <balance 23,000, bought new 3months ago,4 weeks before disability began, traded in truck when motor blew up>.
And $26,000 in student loans. Between the car and student loan that I am keeping current, and living expenses I am tapped with current disability income. these 25,000 CC and loans continue to compound and my credit is going down hill fast.

Basicly I am screwed. Have not had a late payment on anything in 10 years, and now here it is the big D-day. Over night hell creeped in.

My health problems are bipolar. The psyc md took me off of work as my meds are all messed up. I work hard all the time to just show up to work and pay all my bills and have done very well the past few years. Was on disability 3 years ago for one year for the same problems and that is when I started the CC problems, living on them at the time. But I managed to stay a float and pay all the monthly bills. But this time I can not say the same thing
thanks for your time.

[JRScott]

I don't have the NOLO book, however it is probably the best book out there. I have a different bankruptcy book, from what I"ve read here on the forums, the NOLO one is probably easier to understand than mine.

Disabily or health benefits are exempt to an unlimited amount no matter which of the 2 options in California you take.

option 1: California Code of Civil Procedure 704.130
option 2: California Code of Civil Procedure 703.140(b)(11)(A)

I believe you'd still have to list it as income for the means test as well as perhaps Schedule I but then you'd list it as exempt in Schedule C. You should probably ask a lawyer to make sure, I know you'd want it in Schedule C though.

[lrprn]

JRScott, is the book you use NOLO. Seen this posted. Think I will get a book and start educating myself untill time to file.

Here's a link to the Nolo book for Ch 7, EZ - http://www.nolo.com/product.cfm/Obje...51A79/213/161/ . You can purchase a paper copy or download an electronic version to your hard drive. It's $29.99 + tax - well worth every penny!

Another good book about filing bankruptcy is Daniel Sitarz's Personal Bankruptcy Simplified - here its link at Amazon.com - http://www.amazon.com/Personal-Bankr...3421841&sr=1-5

Here are a few links to reliable websites that explain bankruptcy very well -

http://www.moranlaw.net/consider.htm

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html

http://www.moranlaw.net/7discharge.htm

Hope this helps! Learning as much as you can about bankruptcy before filing can save much heartache and frustration down the road - so glad you are going to do that!

[CPO]

Is California state disability insurance exempt. This is not SSI, it is temporary state disability insurance that is good for one year, then you are kicked off to file for SSI.

Anyhow been disabled for 3 months now and will be for another 6 to 9 months. Needless to say my world has come to an end and no CC have been paid for 2 months. I will not make it at this rate for another 9 months. I am positive in the next few months I will have no choice but to file for BK.

But I keep reading that disability payments are exempt.

I think you will find that it's exempt from attachment by creditors and the Trustee, just like my disability from the V.A., military pension and unemployment.

However, it will still be counted as income for purposes of the means test and schedules I & J.

Sorry, not what you want to hear.

You may check the local rules in the court you are filing in, as some courts tend to treat temporary benefits as necessary for calculations but not really a basis to make challenges to your petition.

I know that here in Texas they are well aware that unemployment only lasts six months and tend to avoid driving petitioners into 13's just because they are collecting this temporary insurance.

Regards,

CPO

[EZDUZIT449]

great info everyone,,,, thanks for yor time,, will keep an update and continue to read these posts for info