top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Military retirement pay

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Military retirement pay

    I'm new to forum and I have one question. Is Military retirement pay exempt when filing chapter 7?

    #2
    Your military pension should be exempt from garnishment by a private company if such garnishment is not related to child or spousal support. This protection extends to your bank account. Like SS, the account will need to be a segregated account where nothing but Federal retirement payments (or other protected Federal funds) are deposited. Funds need to be clearly traceable to the source of payment. Discuss this with an attorney.

    See 38 U.S.C. 5301

    https://www.law.cornell.edu/uscode/text/38/5301

    Des.

    Comment


      #3
      Thanks despritfreya for clarifying how to avoid the "commingling" issue with income that is "not income" for purposes of bankruptcy means testing.
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

      Comment


        #4
        Originally posted by justbroke View Post
        Thanks despritfreya for clarifying how to avoid the "commingling" issue with income that is "not income" for purposes of bankruptcy means testing.
        Maybe I misread OP's post. I thought he wanted to know if a trustee could get at the money. If he was asking if the retirement pay is part of means testing, I think it is. I think the Haven Act only keeps VA disability benefits out of the means testing process. I would have to review the Act which I cannot do right now. Either way, OP needs to discuss with an attorney to make sure.

        Des.

        Comment


          #5
          Originally posted by despritfreya View Post
          Maybe I misread OP's post. I thought he wanted to know if a trustee could get at the money. If he was asking if the retirement pay is part of means testing, I think it is. I think the Haven Act only keeps VA disability benefits out of the means testing process. I would have to review the Act which I cannot do right now. Either way, OP needs to discuss with an attorney to make sure..
          That's why I didn't answer the question. I didn't know if they were asking about whether military retirement future income is "current monthly income" as defined by the code, or they were asking whether military retirement income on deposit is exempt.

          It's possible I misread it as the "income" question and not the "exemption" question.
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog

          Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

          Comment


            #6
            Just in case OP is asking about means testing and the Haven Act, here is a summary of what is covered:

            https://www.deb.uscourts.gov/sites/d...aven%20ACT.pdf

            I found what appears to be a typo but, otherwise, it looks pretty complete.

            And another - from the DOJ:

            https://www.justice.gov/ust/file/hav...s.pdf/download

            Des.

            Comment


              #7
              Maybe I phrased my initial question wrong. I was asking if anyone knows if military retirement pay is exempt from garnishment under chapter 7 in the state of AZ. As AZ does not go by federal bankruptcy law.

              Comment


                #8
                Originally posted by Jjr3 View Post
                Maybe I phrased my initial question wrong. I was asking if anyone knows if military retirement pay is exempt from garnishment under chapter 7 in the state of AZ. As AZ does not go by federal bankruptcy law.
                My first response covers it. The Federal Statute cited above, like that for Social Security, should preempt state law. Please discuss with your attorney.

                Des.

                Comment


                  #9
                  Thanks!

                  Comment

                  bottom Ad Widget

                  Collapse
                  Working...
                  X