Filing for chapter 13 bankruptcy may be a good option for you if you can show regular, reliable income and you would like to keep your assets. Within fifteen days after you file your bankruptcy petition for chapter 13, you must file your repayment plan. Your repayment plan will include how you anticipate repaying your debt based on the chapter 13 calculator. After you submit your repayment plan, your creditors and the bankruptcy trustee can object to your plan.
Before you calculate your chapter 13 payment plan, you must determine if any of your debts are priority claims. According to the Bankruptcy Code, some debts must be repaid in full and have priority for repayment over non-secured debt. Examples of debts that are priority debts include spousal support, child support, taxes and administrative costs of your bankruptcy filing.
Calculating Your Monthly Payment in Chapter 13
It can be difficult to calculate your monthly payments under a chapter 13 repayment plan. Each state may use a slightly different calculation, and the median income for each state is different. When creating a chapter 13 payment plan, calculate what your monthly payment under chapter 13 could be, add up all your priority claims first. Next, divide this number by the number of months in your plan. Chapter 13 bankruptcy plans typically last between three and five years, or between 36 to 60 months. After you divide your priority claims by the number of months in your repayment plan, you will see the minimum amount you must pay the bankruptcy trustee each month to qualify for chapter 13 bankruptcy. However, you must also determine the amount of disposable income you generate each month. Disposable income is any income not necessary for the maintenance of you or your family. Your disposable income each month determines how much money you will pay to your unsecured creditors, and the likely length of your chapter 13 repayment plan. In addition, your bankruptcy trustee will add a fee of around ten percent of your disposable income to manage your chapter 13 bankruptcy so you may need to include that in your chapter 13 calculator.
Getting Legal Help
Filing for bankruptcy is a complicated process. To determine your monthly payment in a chapter 13 bankruptcy and to use a chapter 13 calculator, contact a bankruptcy attorney in your state as soon as possible.