Disposable Monthly Income (DMI)

Disposable monthly income (DMI) is the amount of monthly income a debtor has after deducting their reasonable living expenses allowed under bankruptcy law. Disposable monthly income (DMI) is used in the Chapter 7 means test to determine if a filer is eligible to file a Chapter 7 (see Means Test and Chapter 7 bankruptcy), and it is used in reorganization bankruptcy plans to determine which debts are to be paid over the lifetime of the bankruptcy plan.

Various national and local standards are used in determining the means test calculations. In the different types of bankruptcy reorganization plans, DMI is open to questions during confirmation meetings. Any controversy arising about DMI will be decided by the bankruptcy court (see Confirmation). Unfortunately, DMI expenses may be vague. Talk to a bankruptcy lawyer if you have questions about calculating your DMI for means testing.