Means test step 5: Disposable monthly income

Your disposable monthly income is the amount of money you (the debtor) have left over after all expenses are paid. This amount is also known as the net CMI (Current Monthly Income).After the income and expenses have been calculated, add the expense categories together and deduct them from the CMI calculated in Step 1. This calculation is inserted in Part VI of form B22A and Part V of Form B22C.

Example of calculations

Our debtor’s (this hypothetical was begun in the article on step 1 of the means test) disposable monthly income is calculated as follows:Debtor’s CMI (step 1): $5,775Debtor’s necessary expenses under IRS standards (step 2): $4,130Debtor’s additional expenses (step 3): $245Debtor’s secured debt and priority claims (step 4): $1,387Total Expense Deductions: $5,762Total Disposable Monthly Income: $1360-month Disposable Income ($13 X 60): $780

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