In August, 2019, the President of the United States signed the Honoring American Veterans in Extreme Need Act of 2019 (aka the Haven Act) into law. The Haven Act excludes certain veteran affairs benefits from the current monthly income calculation in Chapter 7 and Chapter 13 Bankruptcy.
Prior to the Haven Act, many veterans were unable to qualify for the Chapter 7 Bankruptcy because their VA disability benefits pushed their overall household income over the threshold in the Chapter 7 Means Test analysis. The Haven Act excludes certain VA benefits from the Chapter 7 Means Test calculation. This consequence makes a lot more sense. If social security benefits and social security disability are excluded from the Means Test calculation, why shouldn’t certain VA benefits? Shouldn’t Veterans disability benefits from disability incurred due to military service be treated the same as social security disability benefits from a disability that caused inability to obtain any meaningful employment?
The Haven Act treats Veterans disability payments the same as social security disability benefits in calculating current monthly income. However, some types of federal compensations are not covered by the law. Call Sacramento Bankruptcy Attorney Muoi Chea for more information.
Chapter 7 Bankruptcy
In a Chapter 7 Bankruptcy, the current monthly income determines whether you qualify for Chapter 7 Bankruptcy.
Chapter 13 Bankruptcy
In a Chapter 13 Bankruptcy, the current monthly income determines how much you have to pay in your Chapter 13 Plan and whether your Plan can last for 3 years or 5 years.
The Haven Act excludes certain veteran affairs benefits from the current monthly income calculation in Chapter 7 and Chapter 13 Bankruptcy. Excluding the veterans disability benefits determine which bankruptcy you qualify for and protects the benefits from creditors during bankruptcy.
For more information, call Muoi Chea, experienced Bankruptcy Attorney Sacramento CA. For over a decade, I have a long successful track record of representing consumers and small business owners in Chapter 7 and Chapter 13 Bankruptcy. I accept cases throughout Northern and Central California: Sacramento County, Elk Grove, Citrus Heights, Carmichael, Fair Oaks, West Sacramento, Davis, Woodland, Roseville, Rocklin, Yuba City, Marysville, Sutter, Stockton, Tracy, Modesto, Folsom, El Dorado, Vacaville, Fairfield, Vallejo, Bencia, Lodi, Galt California.