Chapter 13 Payment Plan Calculator
Calculate and understand your 3-5 year repayment plan
How Chapter 13 Payment Plans Work
Chapter 13 bankruptcy involves a 3-5 year repayment plan where you pay back a portion of your debts through a court-approved plan. Your payment amount depends on your disposable income, assets, and types of debt.
Key Factors Determining Your Payment:
- Your disposable income (income minus expenses)
- Value of non-exempt assets
- Priority debts (taxes, child support)
- Secured debt arrearages
- Minimum to unsecured creditors
Payment Calculation Formula
Your Plan Must Pay (Whichever is Higher):
- Disposable Income Test: All disposable income × plan length (36-60 months)
- Best Interest Test: What creditors would receive in Chapter 7 liquidation
- Priority & Secured Minimums: 100% of priority debts + secured arrearages
Priority of Payments
| Debt Type | Payment Required | Priority |
|---|---|---|
| Administrative Fees | 100% | 1st |
| Priority Debts (taxes, support) | 100% | 2nd |
| Secured Arrearages | 100% | 3rd |
| Unsecured Debts | 0-100% | 4th |
Plan Length Determination
3-Year Plan (36 months)
If current monthly income is below state median
Can extend to 5 years for cause
5-Year Plan (60 months)
Required if current monthly income exceeds state median
Cannot exceed 5 years
Sample Payment Calculations
Example 1: Below Median Income
- Monthly Income: $4,000
- Allowed Expenses: $3,500
- Disposable Income: $500/month
- Priority Debts: $3,000
- Mortgage Arrears: $6,000
Minimum Payment: $500/month × 36 months = $18,000 total
Example 2: Above Median Income
- Monthly Income: $7,000
- Allowed Expenses: $5,800
- Disposable Income: $1,200/month
- Priority Debts: $8,000
- Car Loan Arrears: $2,000
Required Payment: $1,200/month × 60 months = $72,000 total
What's Included in Your Payment
Typical Chapter 13 Plan Payment Covers:
- Trustee fee (3-10% of payment)
- Attorney fees (can be paid through plan)
- Mortgage/car loan arrearages
- Priority tax debts
- Child support arrearages
- Percentage to unsecured creditors
Payment Methods
- Wage Deduction Order: Direct deduction from paycheck (most common)
- Electronic Funds Transfer: Automatic bank withdrawal
- Money Order/Cashier's Check: Monthly payment to trustee
- TFS Bill Pay: Online payment system in some districts
Modifying Your Payment Plan
Your plan can be modified if circumstances change:
- Job loss or income reduction
- Medical emergencies
- Increase in necessary expenses
- Change in family size
Important: Chapter 13 plans are complex and require accurate calculations. Use our calculator for estimates, but consult with a bankruptcy attorney for precise payment determination.