Part One: Kinds Of Income Reported In Bankruptcy; Introduction?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on May 11, 2007 in Chapter 7 Bankruptcy, General Bankruptcy Information
PART ONE: INTRODUCTION
There are three different types of income and expenses reported in all bankruptcy petitions, whether Chapter 7 bankruptcy or Chapter 13 bankruptcy is filed.
I call them True Income, Projected Income, and CMI also known as Means Test Income.
True and projected income have always been required to be contained in bankruptcy petitions by the bankruptcy laws. They helped the Courts determine if someone was able to repay some, or all, of their debts.
The 2005 bankruptcy changes added a new type of income called “CMI.” This was done because apparently the government was convinced that the true income and projected income didn’t tell the whole story! CMI is one part of a new formula called the “Means Test” that is used to determine if the government thinks that you have, or should have, the means to repay your debts.
See also: Part Two: Kinds Of Income Reported In Bankruptcy; What Is True Income?
See also: Part Three: Kinds Of Income Reported In Bankruptcy; What Is Projected Income?
See also: Part Four: Kinds Of Income Reported In Bankruptcy; What Is CMI, Also Known As Means Test Income?
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