How Much Will My Payments Be Under A Chapter 13 Plan?

Calculating monthly bankruptcy payments for a Chapter 13 Plan is not a simple matter. The calculation starts with the average of your monthly gross income for the six calendar months preceding the month of filing bankruptcy and then deducts required deductions, IRS allowed living expenses, certain actual living expenses, and certain secured debt. This number is then increased depending on the amount of un-exempt assets, the size of priority claims, and other cash flow calculations.

All of which means we cannot give you an accurate estimate of your monthly bankruptcy payments until we fully delve into your case. Generally, bigger monthly income results in bigger payments.

House payments must be included in the Plan even if you are current, but sometimes car payments and other secured debts can be paid outside the Plan.

Priority claims like taxes and back child support must be paid in full under the plan. Also, secured debt for personal property, but not real estate, generally must be paid in full under the Plan.


Call us to discuss.