Word: Disposable income
Definition:
Income remaining after necessary living or business expenses.
Sample Sentence:
The court calculated the debtor’s disposable income to determine the Chapter 13 payment plan.
Why It Matters:
Disposable income is key in evaluating a debtor’s repayment ability in bankruptcy.
Quick Tip:
Only income not needed for support or operations counts as disposable.
Source: https://www.uscourts.gov/glossary
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