Special Treatment In Bankruptcy For Some Disabled Veterans
Families all over the country are struggling with their finances. These struggles create significant stress which creates problems in all aspects of their lives. Nowhere is this more apparent than in military families where there is a disabled veteran.
One of the financial solutions to help relieve the debt burden and the accompanying stress is a Chapter 7 bankruptcy filing. Chapter 7 bankruptcy wipes out unsecured debts such as credit cards, medical bills, signature loans, repossession and foreclosure deficiencies, pay day and internet loans.
There are certain income requirements which must be met to qualify for a Chapter 7 bankruptcy. If your income is above a certain dollar amount you may not be able file Chapter 7. This “Means Test’ disqualifies some individuals from being able to wipe out their debts and get a fresh start.
However, some disabled veterans receive special treatment in bankruptcy and are not required to pass the “Means Test”. In general, this means certain disabled veterans do not have to include their VA disability income in the “Means Test” and therefore, it is easier to qualify to have their debts eliminated in Chapter 7 bankruptcy. The following requirements must be met to receive this special treatment:
- The disabled veteran must be rated at least 30% disabled by the VA or was discharged as a result of a disability that was incurred in the line of duty; and
- Debts were incurred while in the line of duty.
If the disabled veteran’s spouse is filing, the spouse must pass the “Means Test” to qualify for Chapter 7 filing. It’s very nice and appropriate for Congress to grant special treatment to our disabled veterans who so proudly served our country. Please give us a call to set up a free appointment to see if Chapter 7 is an appropriate option or to discuss other financial solutions to your debt problems.