Re: what is considered Income?

Posted by Why Chat (209.240.222.130) on July 14, 2002 at 12:04:03:

In Reply to: Re: what is considered Income? posted by USvET on July 14, 2002 at 11:10:55:

The criteria for forcing someone to take ch 13 is that there DISPOSABLE income from all sources, after paying normal living expenses, insurance mortgage medical food etc. is sufficient to repay at least 60% of ALL debts over a 3 year period. Unless the disability payments you are receiving leave you with a LOT of left over $$$ -I do not see HOW you can be turned down for Ch 7-- are you SURE you want to stick with a BK lawyer who does not seem qualified to do the correct job for you?
Here are the guidelines for Ch 13.
Chapter 13
Commonly known as "individual debt adjustment", "individual debt consolidation", or "repayment plan". A Chapter 13 bankruptcy can be filed only by individuals.

A typical case generally involves people who have fallen behind in their mortgage payments, delinquent with their priority taxes, or have debts that are generally non-dischargeable in a Chapter 7 (student loans, child support arrears, and others).

Filing a Chapter 13 plan of reorganization takes into assumption that the individual has a source of income. Such income exceeds the individual's household expenses. In essence, the individual has disposable income to be able to fund the plan of reorganization. With this extra income, the individual will be able to pay back their creditors over a 36 to 60 month plan. The advantage is that the individual will be able to force creditors, in a successful plan, to accept his/her terms. These terms afford the individuals relief from losing their home, risking an IRS or State taxing agency levy, wage garnishments, liens and other methods utilized by creditors to collect on their debts.
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Income as understood in the Chapter 13 process can be wages from employment, self employment income, Social Security & Disability benefits, Interest Income, Pension Income, and any other source that provides the debtor with a steady amount of income stream. Income could also be contributions from family members or friends.
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In my experience, it is MORE difficult to get the BK Court to agree to a Ch13-ESPECIALLY for a permenantly disabled person(veteran or not) unless there are a LOT of nonexempt assets or undischargable debt.
Have you tried the VA legal services office?

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