Q: Is VA disability income or social security income add into income determining means test?

A: The clear instructions on Official Form 122A-1 say to exclude income from Social Security and VA disability benefits.

So, do not include those income sources.

A: No. Do not include.

A: When facing financial difficulties, especially with a significant amount of unsecured debt, understanding what income must be included in the means test for bankruptcy can be crucial. The means test is designed to determine eligibility for Chapter 7 bankruptcy, which can discharge many types of unsecured debt, or to establish the parameters for a repayment plan in Chapter 13 bankruptcy.

Regarding your specific concerns about Social Security income and VA disability income, it's important to note that Social Security benefits are generally not included in the means test. However, VA disability income is included in your income calculation for the means test. This inclusion helps to determine your current monthly income (CMI), which plays a key role in assessing your eligibility for Chapter 7 or Chapter 13 bankruptcy.

When preparing for bankruptcy, including all sources of income accurately is vital for the process. If you're also dealing with tax obligations, addressing these in conjunction with your bankruptcy filing is necessary. It's recommended to seek guidance on how your tax situation may impact your bankruptcy case and to ensure all financial information is accurately represented in your filing. Your situation may benefit from professional advice to navigate the complexities of bankruptcy law and to make informed decisions about your financial future.