Part Four: Kinds Of Income Reported In Bankruptcy; What Is CMI, Also Known As Means Test Income?

12 May Part Four: Kinds Of Income Reported In Bankruptcy; What Is CMI, Also Known As Means Test Income?

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?

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Concentrating in Consumer Bankruptcy Law since 1988; Wake Forest Law School JD 1987 Law Office of Susanne M. Robicsek since 1993, Law Clerk to Judge Rufus Reynolds, US Bankruptcy Judge for Middle District of NC; Burns Price & Arneke, PA, David Badger and Associates, PA.

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