In a recent ruling from the Fourth Circuit Court of Appeals, the Court made it clear that the Bankruptcy Code excludes Social Security Income from being included when calculating the amount that a debtor will have to pay in a Chapter 13 bankruptcy. While many courts have been treating Social Security Income in this manner for quite some time. this ruling makes it clear that a debtor cannot be required to use Social Security Income to pay back creditors. On the other hand, if the debtor needs to use some of that money to show that a Chapter 13 plan is feasible, they are free to do so.

This ruling will make it much easier for those who receive Social Security Income to file a Chapter 13 bankruptcy and set a reasonable payment.

If you are considering filing a Chapter 13 bankruptcy in Virginia Beach, contact us or call us at 320-2010. We can meet with you and advise you of what is best in your situation.