Disposable Income In bankruptcy, the difference between a debtor's current monthly income and allowable expenses. The law assumes the debtor could pay this amount into a Chapter 13 repayment plan each month. (See also: current monthly income) ...
disposable income : income available for disposal: as a : the income remaining to an individual after deduction of taxes b : the income of a debtor in bankruptcy that is not necessary to support the debtor or the ...
disposable income: What's left of an employee's income after making legally required deductions, like taxes. Disposable income is used to decide how much of the employee's pay will be taken for a garnishment, attachment, or earnings assignment.
Disposable income
Definition - Noun
: income available for disposal: as
a : the income remaining to an individual after deduction of taxes ...
4) In bankruptcy: filing under chapter 7 by a debtor whose monthly, disposable income exceeds $10,950 or 25% of his or her non-priority unsecured debt (if at least $6,575) for a five-year period is presumptively abusive, ...
Misuse of the Chapter 7 bankruptcy remedy. This term is typically applied to Chapter 7 bankruptcy filings that should have been filed under Chapter 13, because the debtor appears to have enough disposable income to fund a Chapter 13 repayment plan.
If the results of the means test show no disposable income(or in some cases a very small amount) then the individual qualifies for Chapter 7 relief.
 See also: Debtor, Bankrupt, Bankruptcy, Chapter 13, Law
  
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