Glossary
Current Monthly Income (CMI)
Current monthly income (CMI) is the average monthly income a bankruptcy debtor received from all sources during the six full calendar months before the case is filed, excluding benefits received under the Social Security Act and payments to victims of war crimes, crimes against humanity, or terrorism (11 U.S.C. § 101(10A)). It is a backward-looking average, not what you earn today.
Key points
- CMI is defined by 11 U.S.C. § 101(10A) as an average over the six full months before filing, not current take-home pay.
- Social Security Act benefits and payments to victims of war crimes, crimes against humanity, or terrorism are excluded from CMI by the definition itself.
- CMI is the starting number for the Chapter 7 means test under 11 U.S.C. § 707(b)(2) and for the Chapter 13 commitment period and disposable income calculation.
- A non-filing spouse's income is often included on the form, which surprises people who assumed only the filer counted.
- Debtors state CMI on Official Form 122A-1 (Chapter 7), 122B (Chapter 11), or 122C-1 (Chapter 13), filed with the petition or within 14 days.
You have probably just met this phrase on a bankruptcy form or in a letter, and it does not mean what it sounds like. "Current" here is a term of art: it points backward at six months, not at this month. Getting the six-month window and the exclusions right changes the number, and the number drives most of what follows.
What does "current monthly income" actually mean?
Current monthly income is defined in 11 U.S.C. § 101(10A). It is the average monthly income the debtor received, derived during the six full calendar months before the bankruptcy case is filed. The official Chapter 7 form states the mechanic plainly: if you file on September 15, the six-month period runs March 1 through August 31, and if your income varied you add the six months and divide by six (Bankr. E.D. La. official guidance — Chapter 7 Form Packet).
Two features make it a legal term rather than a plain-English one. First, "current" is backward-looking, so a job loss last week does not lower it, and a bonus five months ago still does. Second, the definition carries its own exclusions: benefits received under the Social Security Act, and payments to victims of war crimes, crimes against humanity, or international or domestic terrorism, are not counted. It is not simply income from all sources.
Why does CMI matter in a bankruptcy case?
CMI is the input almost everything else runs on. In Chapter 7, the court considers under 11 U.S.C. § 707(b)(2) whether granting relief would be an abuse, and the calculation starts with the debtor's current monthly income reduced by specified expense amounts and multiplied by 60. The expense figures themselves come from the IRS National Standards and Local Standards and Other Necessary Expenses for the debtor's area, as the statute directs.
In Chapter 13, the same number drives the commitment period and feeds the disposable income calculation, which 11 U.S.C. § 1322 and § 1325 then build on. That is why the Chapter 13 form is titled Statement of Your Current Monthly Income and Calculation of Commitment Period (Form 122C-1).
The comparison the forms make is between your CMI, annualized, and the published median family income for a household of your size in your state — which is why the answer varies by where you live.
| Chapter | Official Form | What it feeds |
|---|---|---|
| Chapter 7 | 122A-1 (with 122A-2 if required) | Means test / presumption of abuse under § 707(b)(2) |
| Chapter 11 (individual, not subchapter V) | 122B | Statement of current monthly income |
| Chapter 13 | 122C-1 (with 122C-2 if required) | Commitment period and disposable income |
How is CMI calculated in practice?
You gather the six full calendar months before your filing month and average them. The form asks for gross wages, salary, tips, bonuses, overtime and commissions before payroll deductions, alimony and maintenance payments, and amounts regularly paid by others toward household expenses, among other categories (Bankr. E.D. La. official guidance — Chapter 7 Form Packet).
Marital status changes the columns. If your spouse is filing with you, both columns are completed. If you are married and your spouse is not filing but you live in the same household and are not legally separated, both columns are still completed. Living separately or legally separated debtors complete only their own column, under penalty of perjury.
Deadlines are short. The statement must be filed with the petition or within 14 days of filing (Bankr. S.D. Ind. official page — Chapter 7 Statement of Current Monthly Income). Debtors must also file copies of all payment advices received from an employer within the 60 days before filing (11 U.S.C. § 521).
What do people get wrong about current monthly income?
The most common error is treating CMI as your paycheck today. It is a six-month average, so someone who was laid off in month six may still show a high CMI, and someone recently rehired may show a low one. Neither reflects the household's present reality, and the forms do not pretend otherwise.
The second error is assuming a non-filing spouse's income is irrelevant. It commonly is included where the spouses share a household and are not legally separated.
The third is treating a high CMI as the end of the road. Above-median income is not a Chapter 7 rejection by itself: the means test continues into allowed expense deductions, and 11 U.S.C. § 707(b)(2)(B) allows a debtor to identify special circumstances justifying additional expenses or income adjustments.
The fourth is using net pay. The form asks for gross wages before payroll deductions.
Median income figures differ by state and household size, so check your state page rather than a national number.
Frequently asked questions
- Does Social Security count as current monthly income?
- No. The definition in 11 U.S.C. § 101(10A) excludes benefits received under the Social Security Act from current monthly income. Payments to victims of war crimes, crimes against humanity, or international or domestic terrorism are also excluded. Separate exclusions exist for certain veterans' benefits, which the Department of Justice identifies for lines 9 and 10 of Form 122A-1.
- Is current monthly income the same as disposable income?
- No. CMI is the gross starting figure; disposable income is what remains after the deductions the Code allows. In Chapter 13, disposable income is determined in accordance with 11 U.S.C. § 707(b)(2) and stated on Form 122C-2, a separate form filed only when Form 122C-1 requires it (Bankr. S.D. Ind. official page — Chapter 13 Calculation of Disposable Income).
- What if my income dropped right before I filed?
- The six-month lookback still governs the CMI figure itself, so a recent drop does not lower the average. Schedule I asks separately for monthly income estimated as of the date you file, and 11 U.S.C. § 521 requires a statement disclosing any reasonably anticipated increase in income or expenditures over the following 12 months. How those interact in your case is a question for a bankruptcy lawyer.
- Do I have to state CMI even if I am not taking the means test?
- Individual Chapter 7 debtors file the Statement of Current Monthly Income regardless, with the petition or within 14 days. Debtors claiming an exemption from the presumption of abuse for primarily non-consumer debt or qualifying military service also file Form 122A-1Supp (Bankr. S.D. Ind. official page — Chapter 7 Statement of Current Monthly Income). Individual Chapter 11 debtors file Form 122B, except in subchapter V cases.
Sources
- 11 U.S.C. § 101 — Definitions · official source
- 11 U.S.C. § 707 — Dismissal of a case or conversion to a case under chapter 11 or 13 · official source
- 11 U.S.C. § 521 — Debtor's duties · official source
- 11 U.S.C. § 1322 — Contents of plan · official source
- 11 U.S.C. § 1325 — Confirmation of plan · official source
- Bankr. E.D. La. official guidance — Chapter 7 Form Packet
- Bankr. S.D. Ind. official page — Chapter 7 Statement of Current Monthly Income
- Bankr. S.D. Ind. official page — Chapter 13 Statement of Current Monthly Income and Calculation of Commitment Period
- Bankr. S.D. Ind. official page — Chapter 13 Calculation of Disposable Income
- Bankr. S.D. Ind. official page — Chapter 11 Statement of Current Monthly Income
- U.S. Bankr. Ct. D. Ariz., Instructions for Completing the Bankruptcy Petition, Schedules and Statements
- Bankr. D. Mass. official guidance — Statements of Monthly Income (Means Test, Disposable Income & CMI)
By Antonio G. Jimenez, Esq. · Florida Bar No. 21022
Sources verified July 28, 2026 · How we verify
Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.