Social Security Benefits Under §101(10A) (B): Excluded Means What?© – Part II

By John Gustafson, Chapter 13 Trustee, Toledo, OH

IV.       Does §101(10A)(B) Settle The Issue?  Are Social Security Benefits Excluded In Chapter 13?

A.        Social Security Excluded For Above-Median Debtors.

In the simplest cases, where the debtor is over the applicable state median income level and the Social Security benefits are paid directly to the debtor, a strong majority of courts have held that Section 101(10A) (B) excludes Social Security income from the means test calculation of the minimum monthly in Chapter 13 cases.  See Baud v. Carroll . . .

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