People Also Ask

What income counts for the bankruptcy means test?

Almost all income counts for the means test, including wages, salary, bonuses, self-employment income, rental income, pension income, unemployment benefits, and regular contributions from others toward household expenses. Social Security benefits are explicitly excluded. The calculation uses your income from the 6 full calendar months before filing.

The means test uses a specific definition of income called "Current Monthly Income" (CMI) that is broader than what most people expect.

Income That Counts

  • Wages, salary, tips, bonuses, overtime, commissions
  • Net self-employment income (gross minus ordinary business expenses)
  • Rental and real property income
  • Interest, dividends, and royalties
  • Pension and retirement income (but not Social Security)
  • Unemployment compensation
  • Workers compensation
  • Annuity payments
  • Regular financial contributions from anyone living in your household (e.g., non-filing spouse income, adult child paying rent)
  • State disability benefits

Income That Does NOT Count

  • Social Security benefits -- explicitly excluded by statute, regardless of amount
  • Payments to victims of war crimes or terrorism
  • Payments under the National Child Abuse Prevention Act

The 6-Month Lookback Period

The means test uses the 6 full calendar months before the month you file. If you file on March 15, the lookback period is September 1 through February 28. This matters because one-time events like a bonus, tax refund, or insurance settlement during that window can inflate your calculated income.

Non-Filing Spouse Income

If you are married and filing individually, your non-filing spouse's income is included in the initial calculation but then deducted for the portion not used for household expenses. This is handled on Form 122A-1 Supplement.