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The new bankruptcy law states not to include social security benefits as income. We receive long term disablity as well. that our attorney showed as income. When filing our papers our attorney did as the new law states, which in turn showed that we owed zero amount to our creditors since the social security was not to be included. When we went before the Trustee for the 341 meeting, the Trustee did not feel that it was right for us to owe nothing and challenged our attorney to prove to him why the social security that we receive should not be included as income. Does a Trustee have the capacity to request this? He wants us to pay something, but why should the law change? Has there been a similar case since the law changed in 2005?

2007-02-25 14:08:10 · 1 answers · asked by mertz 1 in Politics & Government Law & Ethics

1 answers

The trustee most definitely has the capacity to request this, as he/she is the moderator between you and your creditors. If you have no other income, the trustee may also request that you re-file for Chapter 7 bankruptcy to liquidate some of your assets to pay your debts. It is really not fair that you can get off debt free without paying a penny to any of your creditors and your repayment plan which calls for this probably can be said to not be in good faith meaning it can be invalidated. I am not entirely sure how the new law applies to SSD income.

I would have to believe that if SSD is your sole source of income, that it can be counted as income in your Chapter 13 repayment plan. If you have no income, you should be forced to file for Chapter 7.

2007-02-25 14:19:56 · answer #1 · answered by msi_cord 7 · 0 0

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