Part Four: Kinds Of Income Reported In Bankruptcy; What Is CMI, Also Known As Means Test Income?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on May 12, 2007 in Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information
“CMI” is also known as “MEANS TEST INCOME”.
“CMI” stands for current monthly income, even though it is based upon past figures, and therefore is not current, may not be monthly or even what we think of as income.
CMI is calculated from “income”, as defined by the new bankruptcy laws, that a bankruptcy debtor has received in the six months before the month that a bankruptcy case is filed. CMI includes most past taxable income, plus other things that you wouldn’t ordinarily think of as income, including money from other people. It includes contributions from other people, income earned by other people, might include gifts, and other things someone wouldn’t ordinarily consider to be income. It doesn’t include some things that are included in “True” income, for example Social Security.
Determining what to include as CMI in bankruptcy documents is often one of the most complicated aspects of the new law and is difficult for even the most experienced attorneys.
CMI supposedly is a one size fits all formula to help the Court determine is someone has the means to repay their debt. Unfortunately, CMI and the Means Test produces some absurd results, but it is a requirement under the new law.
See also: Part One: Kinds Of Income Reported In Bankruptcy; Introduction
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?
If you liked that post, then try these...
How Late is Too Late to Stop a Foreclosure? by Däna Wilkinson, Attorney at Law
Post Petition Tax Claims in Chapter 13 by Nicholas Ortiz, Boston Bankruptcy Attorney
How Many Bankruptcy Cases Can You File? by Jonathan Ginsberg, Atlanta Bankruptcy Attorney
You must be logged in to post a comment.