Adoption Assistance Payments Excluded from Current Monthly Income in Bankruptcy

A debtors’ Adoption Assistance payments were considered “benefits received under the Social Security Act” and were excluded from the calculation of their current monthly income. The bankrupt debtors had proposed a 21 percent (21%) plan and the trustee objected because they did not believe the debtors were paying all their projected disposable income as required under 11 U.S.C. Section 1325(b)(1)(B). The objection centered around the $2,325 per month in benefits the debtors received under the Adoption Assistance and Child Welfare Act of 1980.

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