Exemption from the means test for qualifying disabled veterans

Not all debtors are required to pass the means test.  For example, 11 U.S. Code Section 707 provides that  a disabled veteran who incurred the debts primarily while on active duty or performing a homeland defense activity may be exempt from the means test.

In order to qualify for this exemption from the means test, the Debtor must document that they meet the statutory definition of a disabled veteran. Additionally, the Debtor will need to provide documentation of the dates during which their debts were incurred (and the amount of each debt). Then the Debtor will need to document whether they were on active duty or performing a homeland defense activity during the time that those debts were incurred.

It can take quite a bit of documentation to successfully prove that this exemption from the means test applies in your bankruptcy case. It is still less documentation, though, than you would likely have to provide if you were required to submit the long form means test.

Elizabeth Rosar Chermack is a Burnsville Bankruptcy Attorney, and can help you analyze whether an exemption to the bankruptcy means test applies to you. Call (952) 491-0390 or send an email to liz@chermacklaw.com to schedule a consultation.

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