QUESTION
Can I file bankruptcy chapter 7 or 13, while my only source of Income is Veterans disability at 100% and SSDI?
Asked on Sep 28th, 2014 on Bankruptcy - California
8 ANSWERS
Derek W. Freeman
For a chapter 7 bankruptcy, the income requirement is that you either make under the median household income for your state, or that you meet the means test. It does not matter what the source of income is. For a chapter 13 bankruptcy, you must establish that you have steady source of income that can fund the payment plan. Again, as long as you have a steady income, the source of income does not really matter.
Answered on Oct 07th, 2014 at 12:56 PM
Deborah F. Bowinski
Yes, you can file. You really should hire an experienced lawyer to guide you through the process. Bankruptcy is quite complex, and when one's home is at risk any legal fees paid become well worth the cost when considering what is at stake.
Answered on Oct 01st, 2014 at 2:37 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Neither SSDI nor disabled veterans benefits are added in to determine if your income is too high or Chapter 7. If you are current on your mortgage and want to shed other debts, then Chapter 7 sounds like it would work best for you. If you are behind on your mortgage or in foreclosure then Chapter 13 would allow you to make the mortgage current and keep the house.
Answered on Sep 30th, 2014 at 9:20 AM
Yes. If you are behind on your mortgage payments, you will probably want to file a Chapter 13. It will allow you more time to make up the payments, at no interest, which a Chapter 7 will not do.
Answered on Sep 29th, 2014 at 2:09 PM
While a bankruptcy filing will postpone a foreclosure, you still have to prove you have the means to pay the mortgage and get caught up on any arrearages. In the context of a chapter 7, if there are arrearages you would have to apply for a mortgage modification. In a chapter 13, you could either propose a payment plan to cure the arrearages or state your intent to apply for a loan modification. VA Disability and SSDI are perfectly acceptable sources of income for proving your ability to pay the mortgage.
Answered on Sep 29th, 2014 at 12:13 PM
You can file bankruptcy under either Chapter provided you qualify to do so. The sources of your income do not determine whether or not you qualify. A far better question is whether you NEED to file bankruptcy and to answer that question would require an explanation of WHY you are considering bankruptcy and what amount you have available after paying just living expenses.
Answered on Sep 29th, 2014 at 11:08 AM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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Yes, you are eligible to file.
Answered on Sep 29th, 2014 at 11:07 AM
Filing BK is not likely to do more than delay a foreclosure. Secured debts are not discharged in BK; you must continue to pay them.
Answered on Sep 29th, 2014 at 10:15 AM