{"id":5733,"date":"2020-12-01T05:47:07","date_gmt":"2020-12-01T05:47:07","guid":{"rendered":"https:\/\/mcintirelaw.com\/?p=5733"},"modified":"2023-05-05T01:46:10","modified_gmt":"2023-05-05T01:46:10","slug":"bankruptcy-chapter-7-current-monthly-income-and-the-means-test","status":"publish","type":"post","link":"https:\/\/mcintirelaw.com\/bankruptcy-chapter-7-current-monthly-income-and-the-means-test\/","title":{"rendered":"Bankruptcy Chapter 7: Current Monthly Income and the Means Test"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1996.8px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p><span style=\"font-weight: 400;\">With so many people filing bankruptcy year-round, a lot of questions on how to file bankruptcy cases are also being asked. People considering bankruptcy are often not familiar with what to prepare before bankruptcy, specifics of the actual bankruptcy procedure, and what they can look forward to after bankruptcy. As such, before filing, you should seek legal help from an experienced bankruptcy lawyer. He or she would help filers like you to be more familiar with the various bankruptcy forms, terms, and requirements.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\">\n<h2 class=\"fusion-responsive-typography-calculated\" style=\"--fontsize: 34; line-height: 1.21;\" data-fontsize=\"34\" data-lineheight=\"41.14px\"><span class=\"ez-toc-section\" id=\"Why_do_a_lot_of_people_with_financial_problems_look_into_filing_a_Bankruptcy_Chapter_7\"><\/span>Why do a lot of people with financial problems look into filing a Bankruptcy Chapter 7?<span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6629ba8a323d3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6629ba8a323d3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/mcintirelaw.com\/bankruptcy-chapter-7-current-monthly-income-and-the-means-test\/#Why_do_a_lot_of_people_with_financial_problems_look_into_filing_a_Bankruptcy_Chapter_7\" title=\"Why do a lot of people with financial problems look into filing a Bankruptcy Chapter 7?\">Why do a lot of people with financial problems look into filing a Bankruptcy Chapter 7?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/mcintirelaw.com\/bankruptcy-chapter-7-current-monthly-income-and-the-means-test\/#What_is_the_bankruptcy_means_test_and_how_will_it_affect_my_bankruptcy_petition\" title=\"What is the bankruptcy means test and how will it affect my bankruptcy petition?\">What is the bankruptcy means test and how will it affect my bankruptcy petition?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/mcintirelaw.com\/bankruptcy-chapter-7-current-monthly-income-and-the-means-test\/#What_do_bankruptcy_laws_define_as_current_monthly_income\" title=\"What do bankruptcy laws define as current monthly income?\">What do bankruptcy laws define as current monthly income?<\/a><\/li><\/ul><\/nav><\/div>\n\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">On top of bankruptcy protection (or automatic stay, which can also be seen in other chapters), bankruptcy filings under Chapter 7 are preferred by those seeking to have their debts forgiven. Through the bankruptcy discharge, you may have the court wipe out certain types of debts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/emergency-bankruptcy-west-virginia\/\"  rel=\"dofollow\" title=\"file for bankruptcy\" data-linkilo-keyword-link=\"linked\">file for bankruptcy<\/a> under Chapter 7, you would not have to pay your creditors if you owe them dischargeable debts. Such bankruptcy discharge is arguably the best way to have your debts wiped out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two common types of bankruptcy are consumer and business bankruptcy. If you are bankrupt and most of your problems involve medical debts or credit card debts, you must prepare for filing a consumer bankruptcy case. Unless you would want to stop foreclosure of certain personal property, you would likely prefer filing for bankruptcy under Chapter 7. However, to qualify for such <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/west-virginia-debt-settlement\/\"  rel=\"dofollow\" title=\"debt settlement\" data-linkilo-keyword-link=\"linked\">debt settlement<\/a>, you must first meet certain requirements set by the bankruptcy code. One of these is passing the means test.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\">\n<h2 class=\"fusion-responsive-typography-calculated\" style=\"--fontsize: 34; line-height: 1.21;\" data-fontsize=\"34\" data-lineheight=\"41.14px\"><span class=\"ez-toc-section\" id=\"What_is_the_bankruptcy_means_test_and_how_will_it_affect_my_bankruptcy_petition\"><\/span>What is the bankruptcy means test and how will it affect my bankruptcy petition?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignright size-full wp-image-5735\" src=\"https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2020\/12\/bankruptcy-in-Virginia.jpg?resize=338%2C338&#038;ssl=1\" alt=\"Bankruptcy Chapter 7\" width=\"338\" height=\"338\" srcset=\"https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2020\/12\/bankruptcy-in-Virginia.jpg?resize=66%2C66&amp;ssl=1 66w, https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2020\/12\/bankruptcy-in-Virginia.jpg?resize=150%2C150&amp;ssl=1 150w, https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2020\/12\/bankruptcy-in-Virginia.jpg?resize=200%2C200&amp;ssl=1 200w, https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2020\/12\/bankruptcy-in-Virginia.jpg?resize=300%2C300&amp;ssl=1 300w, https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2020\/12\/bankruptcy-in-Virginia.jpg?fit=338%2C338&amp;ssl=1 338w\" sizes=\"(max-width: 338px) 100vw, 338px\" data-recalc-dims=\"1\" \/>Through paperwork submitted to the bankruptcy court, the means test will determine if the disposable income of a debtor is enough to pay off what is owed to a creditor. Several forms are involved in this bankruptcy procedure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a Form 122A-1 or Chapter 7 Statement of Your Current Monthly Income or Form, your income (supported by documents from six months before the bankruptcy filing) will be compared to the state median income. If it is below the median, you pass the test and you may file for <a href=\"https:\/\/mcintirelaw.com\/west-virginia-chapter-7-bankruptcy-attorney\/\">bankruptcy under Chapter 7<\/a>. Otherwise, bankruptcy law requires a second form.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a Form 122A-2 or Chapter 7 Means Test Calculation, allowed living expenses such as taxes, utilities, or mortgage payments will be subtracted from the income specified in the first form. If your disposable income is not enough to repay what you owe to a lender, you pass the test. Pursuant to the bankruptcy act, you can go on with filing Chapter 7 and have certain debts discharged.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\">\n<h2 class=\"fusion-responsive-typography-calculated\" style=\"--fontsize: 34; line-height: 1.21;\" data-fontsize=\"34\" data-lineheight=\"41.14px\"><span class=\"ez-toc-section\" id=\"What_do_bankruptcy_laws_define_as_current_monthly_income\"><\/span>What do bankruptcy laws define as current monthly income?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Current monthly income or CMI refers to the mean monthly income received during the six full months before filing your bankruptcy petition. Below is a non-exhaustive list of income that must be included:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Salary, wages, bonuses, tips, commissions, or overtime pay<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Income from a profession or business<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Dividends, interest from investments, or royalties<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Real property income or income from rents<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Retirement income or pensions<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Contributions to the expenses of the debtor and his or her dependents, such as alimony or child support<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; Unemployment compensation, annuity payments, or state disability insurance<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For questions on CMI, <a href=\"https:\/\/mcintirelaw.com\/filing-for-bankruptcy-chapter-7-what-is-the-means-test\/\">the means test<\/a>, or filing bankruptcy Chapter 7, seek legal help from a <a href=\"https:\/\/mcintirelaw.com\">trusted bankruptcy attorney<\/a>. If you are seeking debt relief, are planning to <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/emergency-bankruptcy-west-virginia\/\"  rel=\"dofollow\" title=\"file for bankruptcy\" data-linkilo-keyword-link=\"linked\">file for bankruptcy<\/a>, or would want to clarify how the bankruptcy process can give you a fresh start financially, call us at <strong>Thomas E. McIntire &amp; Associates, L.C<\/strong>.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":5734,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1877],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2020\/12\/filing-for-bankruptcy-in-Virginia.jpg?fit=626%2C447&ssl=1","_links":{"self":[{"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/posts\/5733"}],"collection":[{"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/comments?post=5733"}],"version-history":[{"count":3,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/posts\/5733\/revisions"}],"predecessor-version":[{"id":6669,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/posts\/5733\/revisions\/6669"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/media\/5734"}],"wp:attachment":[{"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/media?parent=5733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/categories?post=5733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/tags?post=5733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}