Food stamps and child support

[invest1choice]

I thought that food stamps and child support were exempt? Why is my attorney adding these in to my income? I did not want to ask him beacuse I do not want him to think I am second guessing him..

[Minnymouth]

If you have "questions" - don't be afraid to ask your attorney!! He will be glad to answer you - if not - ask him why?????

Food stamps and child support are considered part of your "normal income".....so they are listed also.
But they are also exempt items.... thus cannot not be seized to pay other debts is the way it works I believe.

HHM or Todd might be able to answer this question better for you.....

Minny

[HHM]

Even though they are exempt, they are still a "source of income". And for chapter 13 disposible income purposes, even exempt income can make-up "regular income".

[invest1choice]

Your right .. I had just remember reading that is was exempt from income counted. )

[HHM]

This is an odd thing about bankruptcy, for items like social security, child support, and other exempt forms of income, etc., what is exempt is there status as an asset; which means, the Trustee cannot "assume" your right to recieve those benefits to pay back creditors. For example, if you are receiving child support via court order, the trustee cannot intercept your child support payments and assume the benefit of those payments for your creditors.

However, when it comes to the "regular disposable income test", items like Social security, child support, etc are a "regular source of income" and therefore get factored in when determining your income vs. expenses. So, when you combine ALL sources of regular income, and if that amount creates disposible income in excess of your expenses, you may be forced into a chapter 13.

[invest1choice]

That make sense.. thanks so much..