Under the HAVEN Act, which Veterans Administration or VA benefits are excluded in Bankruptcy Current Monthly Income calculation? (HAVEN Act is acronym for Honoring American Veterans in Extreme Need Act of 2019). Below is what was published in the United States Trustee’s website for Bankruptcy Cases:
- Disability and death benefits paid by Veterans Administration under title 38 of the US Code
- Monthly special compensation for catastrophic injuries or illnesses paid to service members under 37 U.S.C. 439
- Any combat-related special compensation paid by the Department of Defense under 10 U.S.C. 1413a
- Disability severance pay paid by the Department of Defense under 10 U.S.C. 1212
- Any payment by the Department of Defense to a survivor in connection with the death of a member of the uniformed services. 10 U.S.C. 1431-1456
- Disability-related military retired pay paid by the Department of Defense to a service member retired under 10 U.S.C. 1201-1202, 1204-1205, except that such payments are excluded from Current Monthly Income only to the extent that they exceed the military retired pay that the service member would have received if the service member had retired without a disability
However, certain benefits to current service members are INCLUDED in the Current Monthly Income calculation, such as monthly special compensation from Department of Defense, and retirement pay for people on the temporary disability retired list. Sacramento Bankruptcy Attorney Muoi Chea can provide more information.
How does the HAVEN Act affect Chapter 7 Bankruptcy?
Veterans or their family member who filed for Chapter 7 Bankruptcy can exclude income covered by the HAVEN Act from the Means Test. This would increase your chances of qualifying for Chapter 7 Bankruptcy. This logic makes sense. If a person can exclude their social security disability benefits from the Means Test, she should also be able to exclude her disability payments from the Veterans Administration.
How does the HAVEN Act affect Chapter 13 Bankruptcy?
Veterans or their family member who filed for Chapter 13 Bankruptcy can exclude income covered by the HAVEN Act from the calculation of the Current Monthly Income. This determine the projected disposable income available for your Chapter 13 Plan. If you can exclude income, your plan payment will be less.
For more information, call experienced Muoi Chea Bankruptcy Attorney in Sacramento California. For over 10 years, I have exclusively represent debtors in Chapter 7 and 13 Bankruptcy filing in Sacramento and Modesto, California Bankruptcy Court. I have represented clients throughout Sacramento, Placer, San Joaquin, Stanislaus, Solano, Yolo, El Dorado, Yuba, Sutter, and other nearby Northern and Central California counties. Call for more details.
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