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Current Monthly Income

The term ‘current monthly income’ is the also known as ‘average monthly income’.  The current monthly income of a debtor is calculated as part of a means test.  This calculation is done in order to determine if the debtor can file under Chapter 7.  A debtor’s income in the past six months just before the commencement of a Chapter 7 case is used in calculating the current monthly income. Normally, the debtor is required to file a current income schedule along with the case filing.  If the schedule is filed at that time then that time period is used for calculating average montly income.  If the schedule is not filed at the commencement of the case then the calculation period runs backwards six months from the date the court is able to determine current monthly income.

A debtor’s average monthly income includes all income received by the debtor from all sources.  Both taxed and untaxed income is included in the average monthly income.  

If a joint case is filed by a couple, then the debtor’s spouse’s income will also be included.  However, some income such as social security income and income received because the debtor was a crime victim (war crime, international terrorism, domestic terrorism) are exempt.[i]

US Bankruptcy Courts 


[i] 11 USCS § 101(10A)

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