Disabled Veteran Exclusion on Means Test

Chester County has a lot of active duty, former, and retired military.  707(b)(2)(D) allows for disabled veterans to be excluded from "means testing".  

First, what is disabled?  The code states that a veteran is considered disabled if they are 30% or more disabled (as rated by the VA) and you were discharged/retired from the military because of the disability.  For example, my friend Paul Lang is a Bucks County criminal defense lawyer and is retired military.  He would be considered disabled because he received a medical retirement.  

But, you cant' stop there.  You must also have incurred your debt "while on active duty or performing a homeland defense activity". This is where the means test exclusion gets tough -- frequently, the debt may be older than even their active duty time.  But, if you had debt in the service, got injured, left the service because of the injury, you can then be excluded from a means test for Chapter 7 purposes. 

Not Done Yet!   

This is important because, if you are working (or your spouse is) and you are receiving VA benefits (which are included in the means), you may not qualify for a Chapter 7 normally.  Still, if you are exempt from the means test, you will still have to show that your disposable income (as calculated by Schedules I and J) is still minimal.