What is Current Monthly Income In a Chapter 7 Bankruptcy
On behalf of Bankruptcy Law Firm of Clare Casas on Thursday, September 23, 2010.
If you're like most people, you think income is only what you earn from a job or through a business venture. For the most part, that's true. In a Chapter 7 bankruptcy, what you earn from an employer or though your business is considered income for the means test, but bankruptcy law also recognizes any other regular contribution to your household as income.
What does that mean? Let's start with a bried look at what "current monthly income" is according to bankruptcy law.
The "current monthly income" received by the debtor means the average monthly income received over the six calendar months before filing the bankruptcy case. Monthly income includes regular contributions to household expenses from non-debtors and includes income from the debtor's spouse if the petition is a joint petition. For the purpose of the means test, social security income or certain payments made because the debtor is the victim of certain crimes [11 U.S.C. § 101(10A)] are not included as income. But what is included as income that is often overlooked?
Any regular contributions to your household is considered income. This means all those cash deposits to your bank account from family members to help you make ends meet. Unemployment compensation is considered income. If you collect rent from someone, that is considered income (it's offset later in the petition but still considered income). Child support and domestic support is income. A general rule of thumb is to consider any source of money coming to you as income and talk to a Broward County bankruptcy attorney on whether you need to include it on the means test or elsewhere on your petition.