Form 122C-1 – Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period

Jurisdiction: Country: USA | Province/State: Federal

What is a Form 122C-1 Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period?

Form 122C-1 tells the court what you earned before filing Chapter 13. It calculates your “current monthly income” using a defined six‑month lookback. It then tells you whether your plan must last three or five years. It also decides if you must complete the separate means test form.

You use this form if you file an individual Chapter 13 case. That includes joint cases with your spouse. It applies whether you are a salaried employee, self‑employed, or unemployed. You may file alone while married. In that case, you still address your spouse’s income if you live together.

You need this form because Chapter 13 plans have set lengths. The court uses your average pre‑filing income to set that length. If your income is at or below your state’s median, your plan is usually three years. If your income is above the median, your plan is generally five years. The numbers on this form drive that threshold decision.

The form also decides if you must complete Form 122C‑2. That separate form calculates your disposable income. You complete it if your income is above the median. You may skip it if your income is below the median. Your trustee relies on both forms to review your plan.

This form captures income from all sources except certain benefits. You include wages, business income, and rent. You also include alimony, contributions from others, and investment income. You exclude Social Security benefits. You average the last six full months before filing. That average is your “current monthly income” for the form.

Typical scenarios show how this works. You may have steady wages and a bonus cycle. The six‑month average will smooth peaks and dips. You may have seasonal self‑employment. You will report gross receipts less ordinary business expenses. You may have a non‑filing spouse who works. You will include their household contributions, with adjustments.

You benefit from accuracy and documentation. The court expects you to be precise. The trustee may request pay stubs, profit and loss reports, and bank records. Your plan length and next steps depend on this data. Form 122C‑1 is not optional in Chapter 13. It is part of every individual case.

When Would You Use a Form 122C-1 Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period?

You use Form 122C‑1 at the start of your Chapter 13 case. You file it with your petition or within a short deadline. Many courts require it within 14 days if not filed with the petition. If you convert from another chapter to Chapter 13, you file it then. The date of the case controls the six‑month period used.

Consider a salaried employee with overtime. You filed in August. You must average the income from February through July. That includes overtime, tips, and bonuses received in those months. The average may be higher than your current month. The form still uses the six‑month lookback.

Consider a self‑employed driver who files in March. Your average covers September through February. You include gross fares. You subtract fuel, platform fees, and other ordinary costs. The resulting average decides your plan’s length. It also decides if you must complete Form 122C‑2.

Consider a married filer whose spouse does not file. You live together and share expenses. You must include the spouse’s regular household contributions. You then take a marital adjustment for the spouse’s separate expenses. The court will compare the adjusted total to the state median.

Consider an unemployed filer who lost work last month. You filed in May. The lookback covers November through April. You still include wages from those months. The average may still exceed your current reality. The form still uses the historical average to set the plan length. Your budget and payment plan can still reflect your current income.

Typical users include wage earners, union workers, teachers, and nurses. They also include sole proprietors, gig workers, and independent contractors. They include homeowners and renters. They include business owners filing individually for personal debt adjustment. Anyone filing an individual Chapter 13 must complete this form.

Legal Characteristics of the Form 122C-1 Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period

Form 122C‑1 is a sworn statement filed with the court. You sign it under penalty of perjury. That makes it legally binding. The court and trustee rely on it to set key case terms. False or reckless entries carry penalties. They can include dismissal or sanctions. They can also include criminal exposure for fraud.

Enforceability comes from several factors. First, the form uses standardized categories and math. That reduces discretion and errors. Second, the oath and signature create accountability. Third, the trustee and court review your entries. They may request backup records. They may examine you at the meeting of creditors. They may object to your plan if the numbers are wrong.

The form triggers statutory consequences. It sets your applicable commitment period. If you are above the median, the default is five years. If you are below the median, the default is three years. The period can be shorter if you pay unsecured claims in full sooner. The period cannot exceed five years. The form also controls whether you must complete Form 122C‑2. Those outcomes bind your plan structure.

General legal considerations apply. Accuracy matters more than rough estimates. Use gross income numbers unless the form says otherwise. Keep every pay stub for the lookback months. Keep proof of non‑wage income. Keep a profit and loss for your business if self‑employed. Do not include Social Security benefits. Include regular household contributions from others. Treat your spouse’s income carefully. Use the marital adjustment where it fits. Do not double-count or omit categories.

Privacy also matters. Use only the details needed for the form. Keep supporting documents ready for the trustee. Do not attach unnecessary records to the public docket. Update the form if you find a mistake. File an amended form quickly. The court allows amendments to correct errors. Prompt corrections build credibility.

Remember the distinction between this form and your budget. Form 122C‑1 uses a historical average. Schedule I shows your current income. Schedule J shows your current expenses. Your plan payment relies on more than one document. The trustee will review the full picture. Still, this form drives the plan length decision.

How to Fill Out a Form 122C-1 Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period

1) Gather your documents.

• Pay stubs for the six full months before your filing month.
• Year‑to‑date earnings records if available.
• Profit and loss statements if self‑employed.
• Bank statements for deposits in the lookback period.
• Proof of alimony, support, or contributions received.
• Rental ledgers and leases if you collect rent.
• Investment statements for dividends or interest.

2) Identify your filing date and lookback window.

• Use the month you file your case.
• Count back to the six full months before that month.
• Example: File in October, lookback is April through September.

3) Determine your household size.

• Count yourself, your spouse if you live together, and dependents.
• Include dependents you support and maintain.
• Use a consistent approach with your tax return.

4) Complete the caption.

• Enter your name and case number if assigned.
• If joint, include Debtor 1 and Debtor 2 as shown in your petition.
• Use full legal names matching your case.

5) State your filing and marital status.

• Check whether you are filing alone or jointly.
• If married and not filing jointly, state if you live together.
• This controls spouse income treatment.

6) Report wage and salary income.

• Use gross pay before taxes and deductions.
• Average the total from all employers for the lookback months.
• Include overtime, tips, commissions, and bonuses received.

7) Report business or self‑employment income.

• List gross receipts for each lookback month.
• Subtract ordinary business expenses for the same months.
• Do not subtract personal living costs here.
• Use the net figure as your business income.

8) Report rental and real property income.

• Record gross rent collected in the lookback period.
• Subtract ordinary rental expenses like management and repairs.
• Exclude mortgage principal as a personal expense.
• Include property taxes and insurance as rental expenses if paid.

9) Report other income categories.

• Interest and dividend income received.
• Pension or retirement income (not Social Security).
• Unemployment compensation as received.
• Alimony or maintenance received.
• Child support you received.
• Regular contributions to household expenses from others.
• Trust or annuity payments.
• Any other recurring income not yet listed.

10) Exclude Social Security benefits.

• Do not include Social Security retirement or disability.
• Do not include Social Security dependent benefits.
• Keep proof of the benefit type in case of questions.

11) Handle non‑filing spouse income when applicable.

• If you are married, living together, and filing alone, include it.
• Include only amounts regularly used for household expenses.
• You may then apply a marital adjustment.

12) Apply the marital adjustment.

• Subtract the amounts your spouse spends on strictly separate expenses.
• Examples include separate student loans or child support for others.
• Do not adjust for your spouse’s share of household costs.
• Keep proof of the adjusted items and amounts.

13) Add all income lines to calculate your total.

• Sum each category to reach your combined monthly income.
• If joint, include both spouses’ numbers.
• Use the form’s lines to guide each addition.

14) Calculate your current monthly income (CMI).

• The form averages the six‑month totals.
• Ensure your totals reflect the lookback months only.
• Cross‑check your math with a calculator.

15) Annualize your CMI for the median test.

• Multiply your average monthly income by 12.
• This figure is your annualized income for comparison.
• Use your household size to identify the proper median.

16) Determine above‑median or below‑median status.

• Compare your annualized income to the median for your state.
• If at or below the median, you are below‑median.
• If above, you are above‑median.
• Mark the proper box on the form.

17) Determine your plan’s commitment period.

• Below‑median usually means a three‑year plan.
• Above‑median usually means a five‑year plan.
• Shorter plans are possible if unsecured creditors get paid in full.
• Plans cannot exceed five years.

18) Decide if you must file Form 122C‑2.

• If above‑median, you must complete Form 122C‑2.
• If below‑median, you may skip Form 122C‑2.
• Confirm your next steps on the form’s checkbox.

19) Review for consistency with Schedules I and J.

• Schedules show your current income and expenses.
• This form shows a historical income average.
• Differences are normal, but your records should explain them.
• Note any major changes for your trustee.

20) Sign the form under penalty of perjury.

• Read every line before you sign.
• Sign and date in the space provided.
• Your attorney will also sign if you have one.
• Keep a copy for your records.

21) File the form on time.

• File it with your petition if possible.
• If not, file within the court’s deadline.
• Late filing can delay your case or cause dismissal.

22) Provide supporting documents when asked.

• Trustees often request pay stubs and other proof.
• Bring documents to the meeting of creditors if directed.
• Respond quickly to any follow‑up requests.

23) Correct errors with an amended form.

• File an amended Form 122C‑1 if you find mistakes.
• Explain material changes in a short cover note if needed.
• Serve it as required in your district.

24) Practical examples to guide entries.

• Wage earner with bonus: Include the bonus if paid in lookback months.
• Self‑employed designer: Use invoices paid, less ordinary expenses.
• Roommate contributions: Include amounts paid toward your rent or utilities.
• Non‑filing spouse’s student loan: Claim a marital adjustment for that payment.
• Rental with large repair: Deduct the repair as a rental expense in that month.

25) Avoid common mistakes.

• Do not use net pay for wage income entries.
• Do not include Social Security benefits.
• Do not include months outside the lookback period.
• Do not double-count business expenses on multiple lines.
• Do not omit irregular income received during the lookback.

26) Keep a worksheet behind your numbers.

• List each month’s income by category.
• Keep the source documents in date order.
• Note any one‑time items and why they occurred.
• This helps you answer trustee questions.

27) Understand the impact on your plan.

• This form fixes your base plan length.
• Your plan payment also depends on your budget.
• Above‑median filers use Form 122C‑2 for expenses.
• Below‑median filers rely more on Schedules I and J.

28) Coordinate with your attorney if you have one.

• Confirm household size and marital adjustments.
• Confirm treatment of business costs with care.
• Review the median comparison before filing.
• Resolve any close calls with added documentation.

This step‑by‑step approach keeps your entries precise. You will show a clear income history. You will make the right median comparison. You will know your plan length requirement. That clarity speeds your case and lowers risk.

Legal Terms You Might Encounter

Current Monthly Income (CMI): This is the average of all income you received in the six full calendar months before you file. Form 122C-1 uses CMI to see if your plan must run for three or five years. Six-Month Look-Back Period: This is the exact window you use to total your income. Count the six full months that end before the month you file. The form requires this snapshot, not your current paycheck. Household Size: This is the count of people you support and live with, including you. It guides the median income comparison on Form 122C-1. Median Family Income: This is the benchmark based on your household size. The form compares your CMI to this benchmark to set your commitment period. Applicable Commitment Period: This is the length of your Chapter 13 plan. Form 122C-1 determines whether your plan should run three or five years. Non-Filing Spouse: This is your spouse if only you file. You still report your spouse’s income on the form, subject to allowed adjustments. Marital Adjustment: This is the allowed deduction for your non-filing spouse’s income not used for household expenses. Form 122C-1 includes a line to subtract those amounts. Regular Contributions to Household Expenses: This is money others pay to help you cover shared bills. You must include these amounts in CMI when they occur regularly. Social Security Benefits Exclusion: Social Security benefits do not count in CMI for this form. You exclude them when calculating your six-month average. Net Business Income: If you are self-employed, you report gross receipts minus ordinary business expenses. The result is the net business income figure required on the form. Gross vs. Net Income: Gross is before deductions; net is after. Form 122C-1 uses gross pay for wages but net figures for business income. Irregular Income: This includes bonuses, commissions, and seasonal pay. You must average these over the six-month look-back for CMI.

FAQs

Do you use your take-home pay or your gross pay?

You use gross pay for wages and salary. That means before taxes and withholding. You still list the deductions on other schedules, but Form 122C-1 needs your gross.

Do you include Social Security benefits?

You do not include Social Security benefits in CMI. Do not add retirement, disability, or survivor benefits from Social Security to the six-month totals.

Do you include your spouse’s income if you file alone?

Yes, if you are married and living together, include your spouse’s income. You can take a marital adjustment for the amounts your spouse spends on non-household expenses. You must be able to document the adjustment.

Do you include child support or alimony?

You include child support and alimony if you receive them. Average the amounts actually received during the six-month look-back period. If you pay support, that will matter later in your plan and budget.

Do you include unemployment, short-term disability, or workers’ compensation?

You include unemployment compensation in CMI. Include short-term disability paid by an employer or insurer. If a benefit is a Social Security benefit, do not include it.

Do you average bonuses, commissions, or seasonal income?

Yes. Total the amounts received in the six-month look-back and divide by six. This smooths spikes in pay and gives the required average for Form 122C-1.

Do you include business income if you are self-employed?

Yes. List net business income. Subtract ordinary and necessary business expenses from gross receipts for each month in the look-back. Use your monthly profit and loss records to support the figures.

Do you need to update Form 122C-1 if your income changes after filing?

Not usually, because CMI is fixed at filing. If you discover an error, you should amend the form. If your income shifts a lot, your trustee may seek plan changes through other steps.

Checklist: Before, During, and After the Form 122C-1

Before signing: Information and documents you need

• Pay stubs or payroll reports for the entire six-month look-back.
• Bank statements for the same months to verify deposits and dates.
• Profit and loss statements if self-employed, by month, with receipts.
• Records of regular contributions from others to your household.
• Proof of child support, alimony, or rental income received.
• Statements for unemployment, short-term disability, or pension income.
• Notes on any months with no income, and why.
• If married and filing alone: your spouse’s pay records and expense details.
• A list of your spouse’s spending that does not support your household.
• Your household size and who you support in the home.
• Your filing month to confirm the six-month window.
• A calculator or spreadsheet with your monthly averages.

During signing: Sections to verify

• Your name, case number, and filing date are correct and consistent.
• The six-month window is correct and includes full calendar months.
• Wage entries show gross amounts, not take-home.
• Business entries show net income, with reliable support.
• Contributions from others are included if they occur regularly.
• Social Security benefits are excluded from CMI.
• Marital adjustment amounts are explained and supportable.
• Household size matches what you report elsewhere in your case.
• Totals and averages are accurate and rounded consistently.
• The median income comparison reflects the correct household size.
• The applicable commitment period is checked accurately.
• You have signed and dated the declaration under penalty of perjury.

After signing: Filing, notifying, and storing instructions

• File Form 122C-1 with your Chapter 13 petition or as ordered.
• Provide copies to the trustee if requested in advance of the meeting.
• Keep the backup records that support each number you listed.
• Store pay stubs, bank statements, and P&Ls securely for the case term.
• Calendar deadlines in case the court requires any amendments.
• Monitor trustee requests after the first meeting and respond quickly.
• Align your plan draft with the commitment period shown on the form.
• If you correct an error, file an amended form, and notify the trustee.
• Keep a clean copy of the final filed form for your records.

Common Mistakes to Avoid

• Don’t forget the six full months. Mistake: Using the most recent pay period or partial months. Consequence: Wrong averages that can set the wrong plan length. Fix: Count six full calendar months before the filing month. Double-check dates.
• Don’t use take-home pay for wages. Mistake: Listing net pay after taxes and deductions. Consequence: Understated CMI and credibility issues with the trustee. Fix: Enter gross wage income. Save net figures for budget schedules.
• Don’t include Social Security benefits. Mistake: Adding Social Security to income totals. Consequence: Inflated CMI and a possible five-year plan when not required. Fix: Exclude Social Security benefits from the six-month average.
• Don’t ignore your spouse’s income. Mistake: Omitting a non-filing spouse’s income when living together. Consequence: Incomplete form and potential objections or delays. Fix: Include spouse income and take a marital adjustment where allowed.
• Don’t skip irregular income. Mistake: Leaving out bonuses, commissions, or rental income. Consequence: Understated CMI and possible amendment demands. Fix: Add all types of income received during the look-back and average them.

What to Do After Filling Out the Form

1. Confirm the commitment period. Your form result drives a three- or five-year plan length. Align your plan draft and payment structure with that period.
2. File the form with your other case documents. If you filed the petition first, meet any court deadline to file this form. Do not miss the deadline.
3. Deliver supporting documents as requested. Be ready with pay stubs, bank statements, and profit and loss reports. The trustee may ask for these before your first meeting.
4. Coordinate with your expense and plan forms. Your CMI result connects to your expense analysis on the related means forms. Make sure the plan payment reflects your income profile.
5. Prepare for the first meeting. Bring copies of your filed forms and income proof. Be ready to explain the six-month window and any irregular income.
6. Watch for trustee follow-ups. Respond fast to requests for clarification or missing documents. Fix any arithmetic issues or missed entries without delay.
7. Amend if you find an error. If a number is wrong, file an amended Form 122C-1. Update your plan if the commitment period changes because of the correction.
8. Track ongoing income after filing. While CMI is fixed at filing, your actual income influences plan feasibility. Let your counsel know if big changes occur.
9. Keep records organized through plan confirmation. Store documents securely and in order by month. Good records shorten review times and reduce follow-up requests.
10. Plan for consistency across the case. Your income story should match across all forms. If something changes, document why and keep the file updated.
11. Prepare for confirmation. The court and trustee will test your plan against your income results. Be ready to show the math you used and why it is accurate.
12. Maintain communication. If you move, change jobs, or change banks, update your case contacts. Staying ahead avoids missed notices and delays.