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VA Disability No Longer Income for Bankruptcy Means Test

Chapter 7 Bankruptcy Attorney VA DisabilityHouse Resolution 2938, the Honoring American Veterans in Extreme Need Act of 2019 or the HAVEN Act, was written to “exempt from the calculation of monthly income certain benefits paid by the Department of Veterans Affairs and the Department of Defense”.

Previously, VA disability was counted toward total income under the bankruptcy means test. The means test determines whether you qualify for a Chapter 7 bankruptcy, and how long and how much your plan payment is in a Chapter 13 bankruptcy.

Under this new bill, current monthly income for bankruptcy no longer includes “any monthly compensation, pension, pay, annuity, or allowance paid . . . in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services.”

This change will help veterans who were injured in the line of duty take advantage of the protections offered by the Bankruptcy Code and get a fresh start for themselves and their families.



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