Current monthly income

A term of art in bankruptcy, current monthly income is a 6-month average of a debtor's income, with some exclusions, the most notable being social security benefits. Current monthly income is a part of means testing.

Related Term: 
Means Testing

Frequently Asked Questions

Our frequently asked questions also address Current monthly income:

How does changed income affect bankruptcy?

An answer to the question of how changes in income impact bankruptcy first requires some background.

Read More ...

Why do I need to bring 6 months of pay stubs?

We need six or more months of pay stubs as part of determining your gross income over the last six months. It's also helpful to understand the exact paycheck deductions currently being made. A debtor's 6-month average current monthly income is computed for determining whether a debtor is above median household income, such that statutory means testing applies. If means testing applies, this average income is compared against expense allowances for determining formulaic ability to pay creditors. This ability to pay affects eligibility for chapter 7 and the required payment in chapter 13.

Read More ...
Subscribe to RSS - Current monthly income