Would a Pension Income be Factored into a Means Test when an Individual files for Chapter 7 Bankruptcy? An individual’s pension income may be taken into consideration when calculating his/her monthly income when he/she files for bankruptcy. This will affect whether or not the individual falls under the median income level which will further help to determine if a means test is required for an individual to qualify for a Chapter 7 Bankruptcy or not. Hence, the pension income of an individual may be factored into a means test when he/she files for a Chapter 7 Bankruptcy. Would a Person’s Government Pension be considered to Determine the Total Income Available to Fund a Chapter 13 Bankruptcy? A government pension may be considered as a disposable income in a chapter 13 bankruptcy. It may be used to calculate the total income available to fund the chapter 13 bankruptcy. Would an Individual’s Social Security Benefits and VA Disability Pension be Affected in a Bankruptcy? An individual’s social security benefits and VA disability pension may not be affected in a bankruptcy. Social security benefits and VA disability pensions are exempt from collection in a bankruptcy and hence the creditors may not be able to claim them if an individual filed for bankruptcy. Would an Individual’s Military Veteran’s Pension be Affected in a Chapter 7 Bankruptcy? Military veteran pension funds are exempt from bankruptcy in most situations provided they are not funded for at least a year before an individual files for a Chapter 7 Bankruptcy. What happens to an Employee’s Pension if a Company Files for Bankruptcy? In most situations, an individual’s pension would be safe if a company filed for bankruptcy because of the provisions of the Employee Retirement Income Security Act (ERISA). The ERISA states that the pension plans of employees may be sufficiently funded and the pension amount may be kept separately from other asset’s of the company either in a separate account or in a trust so that it does not get affected in case of a bankruptcy proceeding.
Posted on: Sun, 10 Nov 2013 19:52:44 +0000
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