Chandler, AZ asked in Bankruptcy for Arizona

Q: I'm been in chapter13 for 2.5 years. My VA disability went up. In AZ do I need to report it? It's been 6 months.

What issues have i caused waiting this long? I thought it didnt have to be reported because it was disability money

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1 Lawyer Answer
Mallory Powers
Mallory Powers
  • Bankruptcy Lawyer
  • Phoenix, AZ
  • Licensed in Arizona

A: All income sources must be reported in bankruptcy, even if they are considered to be non-current monthly income. A federal exemption provides the debtor with the right to receive a veteran's benefit, but this exemption does not eliminate the debtor's obligation to report it for income and means testing purposes. If you included the payments as income on your original filing, and are only concerned about the recent increase, then it probably depends on how much of an increase occurred. Most case trustees are not concerned about minimal or cost of living increases to pay. The best course of action is to either speak with an attorney to assist you, or contact the case trustee to find out if they will require you to amend your petition for the increase in income.

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