The Maine Statement of Current Monthly Income and Disposable Income Calculation is a crucial document used in Chapter 13 bankruptcy cases filed after 2005. This statement assists the bankruptcy court in determining the debtor's ability to make payments and ultimately formulates a repayment plan. The Statement of Current Monthly Income captures the debtor's financial picture by detailing their monthly earnings from all sources. This includes wages, salaries, tips, commissions, bonuses, rental income, and any other regular sources of income. The calculation encompasses the debtor's income for the six preceding months leading up to the current month. It is crucial to include accurate and comprehensive information regarding all sources of income during this period. In addition to the Statement of Current Monthly Income, the Disposable Income Calculation plays a pivotal role in the Chapter 13 bankruptcy process. It assesses the debtor's ability to make monthly payments towards the repayment plan. The disposable income is determined by subtracting necessary living expenses, such as food, housing, utilities, transportation, and healthcare, from the debtor's current monthly income. The calculation takes into account various factors like family size, local standards for housing and utilities, transportation ownership or lease expenses, and healthcare allowances. This meticulous calculation helps the court determine the debtor's ability to meet their obligations and pay off their debts effectively. The Maine Statement of Current Monthly Income and Disposable Income Calculation for Use in Chapter 13 — Post 2005 is a standardized form provided by the Maine Bankruptcy Court. It ensures that all debtors provide uniform and comprehensive financial information essential for an accurate evaluation and successful implementation of the bankruptcy process. Keywords: Maine, Statement of Current Monthly Income, Disposable Income Calculation, Chapter 13, bankruptcy, repayment plan, wages, salaries, tips, commissions, bonuses, rental income, sources of income, accurate information, comprehensive information, six preceding months, necessary living expenses, family size, local standards, transportation ownership, healthcare allowances, Maine Bankruptcy Court, standardized form.
Maine Statement of Current Monthly Income and Disposable Income Calculation for Use in Chapter 13 - Post 2005
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How to fill out Statement Of Current Monthly Income And Disposable Income Calculation For Use In Chapter 13 - Post 2005?
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The means test compares a debtor's income for the previous six months to what he or she owes on debts. If a person has enough money coming in to gradually pay down debts, the bankruptcy judge is unlikely to allow a Chapter 7 discharge.
To calculate the total average monthly payment, add all amounts that are contractually due to each secured creditor in the 60 months after you file for bankruptcy. Then divide by 60.
For a Chapter 13, the ?Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period? (Form 122C-1) tells the court your average monthly income. Your income is compared to the median income for your state, which will assist in calculating your disposable income.
To calculate your monthly payment amount in a Chapter 13 bankruptcy, calculate your income for the six months before your bankruptcy filing. Deduct allowable expenses to determine your disposable income. Pay your priority debtors and any secured debts that you want to keep after the bankruptcy.
How Is Disposable Income Calculated? Your last six months of income divided by six to get average monthly income. If you own a business or work for yourself, you must calculate average monthly income. Any money you get from rent on an asset you own, interests, dividends or royalties.
For an individual, gross income is your total pay, which is the amount of money you've earned before taxes and other items are deducted. From your gross income, subtract the income taxes you owe. The amount left represents your disposable income.
You can't pay more than your disposable income in Chapter 13, because your disposable income represents all earnings that remain after paying required debts. However, there is another step in the Chapter 13 payment calculation, and if you don't meet the criteria, the judge won't approve your plan.
After subtracting all the allowed expenses from your ?current monthly income,? the balance is your ?disposable income.? If you have no disposable income ? your allowed expenses exceed your ?current monthly income? ? then you've passed the means test.