The equity value of a nonexempt resource is the fair market value minus the amount owed on that resource. The amount owed is the amount required to pay off the loan including any penalty for early payment.
For AABD medical cases, if medical eligibility includes a backdated month, use the verified amount of nonexempt resources available on the first day of each individual month that backdating is requested before any income has been added or expenses paid.
- Example: Mr. A's bank provides statements from the 10th through the 9th of each month. For the statement ending April 9, he had $4,112 in the account. Reviewing the account, the caseworker sees that $1,284 from Social Security was added April 3rd and $412 in expenses had been paid since April 1. Subtracting the net income of $872 ($1,284 - $412), the caseworker calculates an account balance of $3,240 on April 1 before any income or expenses affected the balance. The caseworker uses $3,240 as the April balance for the account.