Source: http://qa.answers.com/Q/Can_VA_disability_income_be_used_in_calculating_income_for_a_bankruptcy_filing
Timestamp: 2018-03-20 13:35:09
Document Index: 156824070

Matched Legal Cases: ['§5301', '§3741', '§101', '§901', '§ 901', '§ 211', '§ 511']

Can VA disability income be used in calculating income for a bankruptcy filing
Answers.com® WikiAnswers® Categories Law & Legal Issues Bankruptcy Law Can VA disability income be used in calculating income for a bankruptcy filing?
Can VA disability income be used in calculating income for a bankruptcy filing?
no , because it falls under the federal exempt laws. example income from Social Security Dis. Child support, Rail Road funs etc.
Can your VA Disability income be used in calculating total income for a chapter 7 bankruptcy filing?
yes ,under Florida law. ------------------------- That is incorrect, VA Disability benefits are not considered income and are protected under U.S. Code, Title 38, §5301(a)
Is VA disability income reported on a 1099 each year?
  Answer   I do not think so, VA disability is not taxable. I get a 1099-R each year showing my military retirement income but nothing to show my VA disability.  …
If you declare bankruptcy would your disability allowance be used as income or disregarded?
  It is income. ALL income is income in a bankruptcy, no matter the source. Speak with an attorney about your specific situation. If you can not find an attorney, contac…t your local Bar association and they will refer you to one.
When filing bankruptcy do they take your income tax?
  This question has been discussed many times here..and there seems to be no hard and fast rule. Certainly, it depends on several things. Most importantly, is what perio…d the overpayment reflected in the refund really relates to. For example, say it is a refund for a year and you filed BK in Dec of that year. Basically, all of the tax you paid in was from pre-petition...had you had the correct amount withheld (or by estimated payment, hence no refund of overpayment being made), presumably (and rightfully) that additional amount would have been available to pay those creditors. Consider, you could have had more (even 100%) withheld and deposited in your account with the Government, that shouldn't mean you get to essentially just withdraw it now. (Had you put it in a bank account you wouldn't expect to). On the other hand, if you file the BK in January, then virtually all the overpayment is due to earnings post petition...which are actually yours and not part of the bankruptcy. Viewed this way, I think the actions make some sense. Add in any complications, like you don't make earnings evenly through the period...and it's a question needing a reasonable solution you may need to propose to the trustee.
Can you file bankruptcy if you receive VA disability?
It is possible to file bankruptcy when receiving VA disability.
Yes it does. Any form of income counts towards calculating your means test. Social Security incomes do not count as income. I just visited my lawyer today. The only question …we had was if my VA Disability would count, because there is nothing in the books that show one way or the other about VA disability. It specifically states that SSDI does not apply or count towards your income with filing Chapter 7/13. Although they are going to check, they are positive that disability income of any sort does not apply towards your income. IF you are:a veteran, ANDyou are disabled (as defined in 38 U.S.C. §3741(1)),The term "disabled veteran" means (A) a veteran who is entitled to compensation under laws administered by the Secretary for a disability rated at 30 percent or more, or (B) a veteran whose discharge or release from active duty was for a disability incurred or aggravated in line of duty. ANDyour indebtedness occurred primarily during a period in which you were: on active duty (as defined in 10 U.S.C. §101(d)(1)), orThe term "active duty" means full-time duty in the active military service of the United States. Such term includes full-time training duty, annual training duty, and attendance, while in the active military service, at a school designated as a service school by law or by the Secretary of the military department concerned. Such term does not include full-time National Guard duty.performing a homeland defense activity (as defined in 32 U.S.C. §901(1)), Title 32. National Guard / Chapter 9. Homeland Defense Activities / § 901. Definitions: In this chapter: (1) The term "homeland defense activity" means an activity undertaken for the military protection of the territory or domestic population of the United States, or of infrastructure or other assets of the United States determined by the Secretary of Defense as being critical to national security, from a threat or aggression against the United States. THEN you are exempt from the means test.
Can social security disability income be used in calculating total income for chapter 7 bankruptcy?
Currently Social Security Benefits to include VA Benefits and VA Caregiver Benefits (www.caregiver.va.gov) is not included for the means test. However.........when looking at …the total amount of income that is available your Social Security becomes part of the computation. You will then have to navigate through the bankruptcy court trustee and have a pretty good reason why that money should not be used to pay back your creditors. Additionally, Federal Law prevents a Veteran's Disability from being garnished except for Child Support and YES the dreaded Tax man. I am currently facing the possibility of going through the means testing as a Disabled Veteran receiving $1692.00 per month to include my $1700 from my Army Pension, $1750 for VA Caregiver Services and $1700 from my working spouse. When you add it all up total pay is $6842 and when you subtract the VA Social Security Exemption the new amount is $3,400. Be sure to show that your money is being spent for just that, Caregiver Services and keep good receipts and be prepared to explain this to your lawyer and trustee.
  I filed chap 13 Aug of 08 and they did include my VA disability as income.
Can your VA Disability income be used in calculating total income for child support?
The simple answer to this question yes and no. Can a judge do anything they want with judicial immunity? The answer is yes. It's up to the lawyers to present the law and convi…nce the judge. If they fail to do that the court can and has in many cases made improper rulings. Is VA Compensation supposed to be used by the court to do child support? No. Is VA Compensation the same as disability? No, this mistake is common because a disability is an eligibility requirement. If you are hit by a car, the insurance company will pay the medical and costs to fix your car in restitution for the accident. It is also not a benefit. You wouldn't call a military funeral a benefit. Benefits are things like reduced camping fees. VA Compensation is restitution. Is it legal to use VA Compensation for Spousal Support? No, both the cases of Mansell v Mansell and Rose v Rose demonstrate it was excluded for spousal support. However you have to go back to the Tennessee Court of Appeal to see they overruled the lower court on the spousal support. The Supreme Court applauded and agreed to their interpretation on page 481 at 625. Justice O'Connor provided a dissenting opinion to this matter but prefaced this opinion by stating the other 7 justices disdain her opinion. When the US Congress responded to the case with the Department of Veterans Affairs Act of 1988 they made no change to the section 3101 she identified when it was made 5301. It has gone unchanged since 1988. In not so subtle words, telling her Congress disdains the opinion as well. Is it legal for the COURT to use VA Compensation for Child Support? Tricky answer. Prior to the Rose v Rose case of 1987 the Veterans Administration was failing to do its job by spitting the payments when a dependent was not living with the veteran. This is what the Rose v Rose case was about. The US Supreme Court ruled under the existing language of 38 USC 211 the states had the "deep moral" responsibility of assuming this federal authority. The Federal Government had just enacted the Child Support Enforcement Act taking Authority over the establishment and enforcement of Child Support. This act dictates policy and oversees the programs administrated by the states. The basic understanding here is the states were essentially required to act in the failure of the Veterans Administration. From 1975 to 1987 the answer is yes. From 1988 to present the answer is no. The US Congress responded to this case by firing the Veterans Administration. They enacted the Department of Veterans Affairs Act of 1988 and completely rewrote Title 38 in its entirety. 38 USC § 211 - 1987 "The decisions rendered by the Administrator on any question of law or fact under any law administered by the Veterans' Administration providing benefits for veterans." 38 USC § 511 - 1988 "The Secretary shall decide all questions of law and fact necessary to a decision by the Secretary under a law that affects the provision of benefits by the Secretary to veterans or the dependents or survivors of veterans. Subject to subsection (b)(Appeals Processes), the decision of the Secretary as to any such question shall be final and conclusive and may not be reviewed by any other official or by any court, whether by an action in the nature of mandamus or otherwise." This response of Congress declared Sole Authority for the new department and obligates the USDVA to divide the compensation through apportionment for dependents. Is it legal for the Department of Veterans Affairs to divide VA Compensation? Yes, the new USDVA is now currently paying on over 30,000 cases of apportionment for those that properly follow the legal process. The correct course of law is not to go to court to divide the VA Compensation. That would be like asking them to split up a food stamp card. You would go back to the Food Stamp office and update your information and get separate card. For VA Apportionment it is very similar and legally called an Apportionment. When a person separates from a Veteran, they need to go to a Veteran Services office and request help completing VA Form 21-4138. A spouse can apply for benefit apportionment for themselves until a divorce is complete and any children in their custody. During the divorce you are still the spouse and a dependent. Once a final divorce decree is made, only children will remain as dependents. The parent or guardian needs to have the State Office of Child Support Enforcement (OCSE) complete a copy of vba-21-4138. The OCSE should complete the form. They need to specifically state how much child support is awarded based on NOT including any payments under Title 38. They also need to specifically identify a monetary amount for the "NEED" of the child. This can be either the state standard or based on special needs as long as documentation is provided. The USDVA needs this to see the exact amount needed to fill the gap. Any conditions of abuse or other factors of the child's life should be included with documentation. These will also be taken into consideration.
Do you need to file taxes if none of your income was taxable like lets VA disability?
In that case NO you would not be required to file a tax return.
When on disability and listing income for filing bankruptcy do you list the benefits received for your children?
Here is a good rule of thumb--when filing for bankruptcy you list EVERYTHING! And by everything, I mean everything. Courts do not appreciate even unintentional concealments of… sources of income. My advice to you is to contact an attorney that specializes in bankruptcy to help you with the application and process. Doing so would answer questions like where to put what and also familiarize yourself with what debts are and are not dischargeable.
If you are on disability do you need to file income tax?
It depends on certain conditions. If you have a job, or if you have another earner in the family. Up to 85% of your Social Security can be taxed. If, however, SSDI is your o…nly income, then you don't have to file. Optionally, you send in a 1040EZ. On line 1 write $0 for wages, salaries, and tips. Add $0 on all lines to claim moneys. After the second year, the IRS normally sends a letter to the effect that you don't have to file until your income changes.
Austincrozier
Does VA disability compensation benefits count as earned income?
no it dose not, its is concidered a non taxable income, much like social security disabilty income
State Income Tax Claims, Federal Tax Claims, and Real Estate Taxes must be included in a bankruptcy filing. Income tax claims that are less than three years old will usually b…e consolidated with other debts and paid over three to five years in a Chapter 13. Depending upon income and assets, income tax claims for returns that were filed more than three years before the bankruptcy can sometimes be reduced substantially in a Chapter 13 and eliminated completely in a Chapter 7. The discharge of the debt in a bankruptcy, can actually cause taxable income for the year it is discharged if not handled proerly. You will get a 1099-C for most matters concering it.