How does Social Security and railroad pension come into play in regard to a chapter 7 or 13?? We currently make too much to pass the chapter 7 means test with the railroad pension. Does railroad retirement fall under the social security act and does it have to be included in the means test as income or is it exempt/excluded?? This is for the state of MN. Thanks!
1 Answer from Attorneys
Social Security doesn't count on the means test, but I know of no reason why Railroad retirement would not. I would include the Railroad retirment on the means test and on the forward-looking income projections in your bankruptcy petition.
Then for Schedule I, which is the forward looking income form, I would list all income including the Social Security. That is how I would want to handle it, although I have heard some who believe Social Secuirty should not be mentioned on Schedule I either. Personally I just don't see how it can be ignored if it is actually there. I would rather work around it than try to pretend it's not there.
It looks as if the 9th Circuit Court of Appeals has made some rulings that may say Railroad Retirement is to be excluded. Those decisions don't apply here. We are under the jurisdiction of the 8th Circuit. The 9th Circuit is in California and they have a reputation for being crazy. I haven't seen anything similar from the 8th Circuit and have never heard of any ruling like that which would apply here.
This response is for general information purposes only, is not legal advice and does not create an attorney-client relationship. I am a debt relief agency helping people to file for relief under the federal bankruptcy code.
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