Q: Can Florida bankruptcy trustees disregard state and federal bankruptcy exemption statutes?
I write on behalf of my parents, both 74. They are about one year into chapter 13 bankruptcy payments. AFTER that process commenced, my father was awarded VA disability payments based on being "80% disabled." This resulted in approximately $1,700 a month in disability pay, with a forthcoming lump sum payment. Their lawyer informed my parents that the trustee would consider that as disposable income, and thus will be made available to creditors on top of what they are already receiving.
Question: Can trustees of the U.S. Bankruptcy Court Middle District of Florida disregard federal and state statutes that exempt this income? Can they collectively decide to act in contravention of these statutes and "write their own case law" with impunity? (I speak of federal statute 522(d)(10)(B) and Florida statute 220.201, which is "notwithstanding" Florida statute 220.20.)
Thank you.
A: In a Chapter 13 all income is lumped together to calculate the monthly payment needed to repay the creditors whatever amounts each one gets. Contact you BR lawyer and tell him you want to consider changing the 13 to a 7.
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