Current Monthly Income

The current Bankruptcy Code considers a debtor's ability to pay future debts to be determined by the debtor's average income over the previous six months. United States Bankruptcy Code under 11 U.S.C. 101 (as effective 10/17/05) has defined a debtor's current monthly income as the average monthly income from all sources that the Debtor (and their spouse if applicable) received during the 6-month period ending on the last day of the calendar month immediately preceding the date of the commencement of the bankruptcy case. Income includes regular contributions to household expenses from non-debtors but excludes benefits received under the Social Security Act, payments to victims of war crimes or crimes against humanity on account of their status as victims of such crimes, and payments to victims of international terrorism (as defined in section 2331 of title 18). Current monthly income is used to decide whether a debtor is eligible to file Chapter 7 Bankruptcy and other bankruptcy related matters.