Chapter 13 HAVEN Act

[PeterNoto]

What is the name of your state? VA

I am in the midst of a Chapter 13 repayment plan. Last month the HAVEN Act was signed into law thus exempting all veterans compensation from disabilities from CMI, disposable income calculations. My chapter 13 plan was originally drafted with my veterans disability compensation included but now it is exempt. I can't get an answer from my attorney. Should he file a new repayment plan exempting my VA disability compensation?

 

[LdiJ]

What is the name of your state? VA

I am in the midst of a Chapter 13 repayment plan. Last month the HAVEN Act was signed into law thus exempting all veterans compensation from disabilities from CMI, disposable income calculations. My chapter 13 plan was originally drafted with my veterans disability compensation included but now it is exempt. I can't get an answer from my attorney. Should he file a new repayment plan exempting my VA disability compensation?

You are going to need to give him some time to research the new law. Was he familiar at all with the HAVEN Act when you mentioned it to him? He is also going to need to find out if it applies retroactively.

 

[Taxing Matters]

You are going to need to give him some time to research the new law. Was he familiar at all with the HAVEN Act when you mentioned it to him? He is also going to need to find out if it applies retroactively.

Not a lot to research. The law is very short. The Haven Act is Public Law 116-52. However, the bill does not give any effective date, so the attorney may have to move to use the updated calculation and the judge will sort it out if the trustee argues it does not apply in this case.

 

[PeterNoto]

Not a lot to research. The law is very short. The Haven Act is Public Law 116-52. However, the bill does not give any effective date, so the attorney may have to move to use the updated calculation and the judge will sort it out if the trustee argues it does not apply in this case.

My attorney said:

In addition, the Haven Act only removes it from the means test (which could result in a lower required 13 payment) it does not, as of yet and there has been no ruling, that it removes it from your budget (meaning Income on schedule I)

It shouldn't even be added anywhere, am I right?

 

[despritfreya]

Peter,

As I indicated on the other forum, the new law does not appear to be retroactive and, if it is not, it does not impact your case as it relates to the means test.

As to Schedule I, your attny is indicating that there is absolutely no support for the proposition that VA benefits are not included in your normal budget. As it is included (due to lack of anything supporting that it is not), your budget will show you can afford a higher Plan payment. This is different than SS. Case law in some - but not all (as far as I know) jurisdictions, state that SS does not have to be included on Schedule I in Chapter 13 cases.

If you want to litigate the issue to get some case law, talk to your attny. But. . . I can't imagine him agreeing to handle "a test case" for free.

Des.

 

[PeterNoto]

I got some legal advice today. My lawyer is wrong. Per the Haven act, my disability is totally exempt. I'm switching lawyers, he just wants a fee.

 

[despritfreya]

I got some legal advice today. . . Per the Haven act, my disability is totally exempt.

Glad you found an attny willing to move the envelope without cost to you. Please keep us informed re: the terms of your Amended Chapter 13 Plan, the Trustee's "recommendation" as it relates to the Amended Plan, and the final Court determination (ruling holding that VA disability is now treated exactly the same as SS). This will assist others similarly situated.

All the best.

Des.