Ask a Lawyer - Archive
   
Funding a Chapter 13 Plan
Cathleen Cooper Moran

Q. 

Can VA Disability be used as income to make plan payments in Chapter 13?

-- Randy

A. 

Absolutely. The debtor is free to use any source of income, or even sale of assets, to fund a Chapter 13 plan.

The means test, which is supposed to be a formula to determine how much a debtor must repay, excludes Social Security income from the calculation. But exclusion from the means test doesn't limit the debtor's ability to devote that income to funding a plan.



-- Cathleen Cooper Moran

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