The United States Bankruptcy Court for the Central District of California has held that “Current monthly income” consists of income received during the applicable six-month period, regardless of when it was actually earned or when the debtor’s services that led to the income were performed. In re Katz, —- B.R. ——, 2011 WL 1990813 (Bankr. C.D. Cal., May 20, 2011). The timing of income creates both an opportunity and a trap for practitioners. If the debtor has an unpaid bonus or large commission the timing of when the case is filed may be critical as to whether or not there is a presumption of abuse on the means test. It is standard practice at my office to ask about anticipated fluctuation in income so that we may carefully plan accordingly. GooglePlaces
