Browse terms
Who can file
Current monthly income
The average monthly income from all sources that a debtor received during the six full calendar months before the month the case is filed, whether or not the income is taxable. 1
Talk to a lawyerHow it works
It is a look back, not a snapshot of today's pay. The period ends on the last day of the calendar month before filing, so the month of filing itself is left out: a case filed in July looks at January through June. In a joint case the income of both spouses counts. 1
It includes amounts that someone else regularly pays toward the household expenses of the debtor or the debtor's dependents. It leaves out Social Security Act benefits, payments to victims of war crimes, crimes against humanity or terrorism, and certain military disability and death compensation. 1
The figure feeds the means test. Current monthly income multiplied by 12 is compared with the state median family income for a household of the same size; at or below the median, no one may move to dismiss a Chapter 7 case under the means test presumption. In Chapter 13 it helps set the plan length: generally three years when it is below the state median and five years when it is above. 2 3
It is also the starting point for working out disposable income in Chapter 13. 4
Common questions
Is current monthly income the same as my current paycheck?
No. It is an average over the six calendar months before the month of filing, so it can differ from what you earn today. 1
Do Social Security benefits count?
Benefits received under the Social Security Act are left out of current monthly income. 1
Sources
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