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Do Military Veterans Lose Benefits if They File for Bankruptcy?

Do Military Veterans Lose Benefits if They File for Bankruptcy?

Are you a veteran who receives Social Security disability benefits? Are you struggling to pay your debt? Have you considered bankruptcy, but heard that you will lose your benefits because you are a veteran? While you may have read alarming headlines that say veterans can lose their disability if they file for bankruptcy, it is only meant to grab your attention.

The fact is, Social Security disability benefits aren’t counted on the Means Test when you file for bankruptcy. If you get a disability check from the military, it will have to be included on your means test, but this doesn’t mean you will “lose” your benefits. What actually happens, is that the reported income might force the veteran to file for Chapter 13 instead of Chapter 7 if it’s too high. This means some veterans have to pay back debt that would have otherwise been discharged through Chapter 7.

While this process is unfair for some veterans, Congress has been considering enacting the Honoring American Veterans in Extreme Need (HAVEN) Act. Under this act, veterans would no longer have to claim service-related disability income on the Means Test.

Talk to Our Attorneys at Bach Law Offices

At Bach Law Offices, we are committed to helping veterans obtain debt relief through bankruptcy. Our legal team receives countless calls from veterans who are worried they will lose their VA benefits, but with our compassionate guidance and support, our clients are able to successfully file for bankruptcy and get a fresh start on their finances.

Give us a call today at (847) 448-0025 to request your case consultation with one of our experienced bankruptcy attorneys.


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