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Current Monthly Income (CMI)- This is the monthly average of all income received by the debtor during the six (6) month period ending in the month prior to the filing of the bankruptcy petition. It includes the debtor's gross wages, salary, commissions and all sums paid to the debtor on a "regular basis" for household expenses. It does not include benefits paid under the Social Security Act such as Social Security Disability, Retirement or Survivors Benefits, SSI, Public Assistance, and Unemployment Compensation. If a joint case is filed it includes all income also received by the debtor's spouse. If a married spouse files alone the non-debtor's spouse's income can be counted (unless the parties are separated) to determine if the debtor's current monthly income meets or exceeds the state median income. Section 101(10A), Bankruptcy Code. Debtor- The individual who is the subject of a bankruptcy case. See 11 U.S.C. §101(16). Discharge- A Discharge is a release of the debtor from personal liability for certain specified types of debts. Once the discharge is granted a debtor is no longer required to pay any of the debts that were discharged in the bankruptcy. A discharge in Chapter 7 is entered approximately two to three months after the date set for the meeting of the creditors, provided no objection to discharge is filed. A discharge will be denied if the filing fee is not paid, the debtor ignores a Court Order, received a discharge within the last 8 years (This time period will vary depending on the type of the prior bankruptcy), concealed, destroyed, or transferred assets with intent to hinder, delay, or defraud within 1 year of filing the petition, intentionally concealed or destroyed financial records, lied under oath, or failed to explain the loss of assets. The scope of the discharge in a Chapter 7 case has been narrowed under BAPCPA by expanding the list of debts that will be considered non-dischargeable, these include:Consumer debts owed to a single creditor totaling more than $500 which were for luxury goods or services incurred within 90 days prior to filing, or cash advances of $750 or more made by the debtor within 70 days of filing; domestic support obligations; most student loans; debts owed to pension plans and loans from ERISA plans. Creditors may file an "objection to discharge" of their debt if they believe they meet one of the criteria under Sect. 727(a) of the Bankruptcy Code. See I 1 U.S.C. §§727, 1328. Dischargeable Debts- Debts that are cancelled upon the issuance of a discharge. These generally include all your standard consumer debts, such as loans and credit card debt. However, not all debts are dischargeable. See Nondischargeable Debts. |
Bankruptcy Glossary of Terms
Part 3 of 9