11 USC 101(10A) “Current Monthly Income”
So you have been reading all over the internet that you need to be below a certain income to “qualify” for a Chapter 7 Bankruptcy. That amount varies for family size, and from state to state. And, in Ohio, those median amounts recently changed.
Here is how the bankruptcy code 11 U.S.C. §101. Definitions defines “Current Monthly Income”:
(10A) The term “current monthly income”—
- Means the average monthly income from all sources that the debtor receives (or in a joint case the debtor and the debtor’s spouse receive) without regard to whether such income is taxable income, derived during the 6-month period ending on—
- The last day of the calendar month immediately preceding the date of the commencement of the case if the debtor files the schedule of current income required by section 521(a)(1)(B)(ii); or
- The date on which current income is determined by the court for purposes of this title if the debtor does not file the schedule of current income required by section 521(a)(1)(B)(ii); and
- Includes any amount paid by any entity other than the debtor (or in a joint case the debtor and the debtor’s spouse), on a regular basis for the household expenses of the debtor or the debtor’s dependents (and in a joint case the debtor’s spouse if not otherwise a dependent), 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) or domestic terrorism (as defined in section 2331 of title 18) on account of their status as victims of such terrorism.
Without going into massive amounts of detail it comes out to: Gross income for the last six months, not including payments from Social Security.
How The Chris Wesner Law Firm Can Help
Bankruptcy however is an extremely complex area of law and you should always speak with an experienced and knowledgeable bankruptcy attorney if you are even considering bankruptcy. At Chris Wesner Law Office, LLC we offer a FREE initial consultation and Have offices throughout the Miami Valley, in Dayton, Xenia, Troy, Springfield, and Piqua. Our Dayton Ohio office is located at: 5540 Far Hills Ave., Dayton, OH 45429.