Chapter 13 Bankruptcy Plan Payment Calculator

A chapter 13 bankruptcy plan allows debtors to get into a monthly payment that is manageable, and based solely on available monthly disposable income. This offers petitioners with a regular income a solution to get out from under large debt loads with a payment that will be manageable based on their income.

Please note that bankruptcy laws are complicated and the actual calculations done in a chapter 13 plan include "average" income over the previous six months and certain calculations to cover priority debt. (To learn about how different debts are treated in Chapter 13 Bankruptcy, see your debts in Chapter 13 Bankruptcy.) Even so, this calculator will give you a rough estimate of what your monthly payment would be and how much debt is repaid in chapter 13.

What if Debts are Too Large for the Plan?

The great majority of petitioners seek chapter 13 assistance because their debts have become too large to realistically repay. In a chapter 13 bankruptcy, the monthly payment has very little to do with the amount of debt, and instead is based on available disposable income. This means that if the payment is insufficient to repay all debt, then remaining debts will be discharged and the petitioner is relieved of any creditor claim.

What if My Income Changes?

During the repayment time-frame, the petitioners financial circumstances may change. If a drop in income occurs the petitioner can ask the bankruptcy trustee to modify the plan to fit the new situation. In some cases, the bankruptcy can be converted to a chapter 7, discharging all debt and eliminating the payment plan.

How Long Will the Plan Be?

The payment plan will be either thirty six or sixty months, depending on your income. If your income is below that median for your state, your plan will be three years. If it's above the median, then it will be five years.

Get Informed: Learn more about The Chapter 13 Repayment Plan

Always Talk to a Bankruptcy Lawyer

Bankruptcy, and Chapter 13 in particular, is a complicated process. There are a wide variety of alternative legal options and bankruptcy strategy that must be employed to get the most successful result. Always seek legal advice from a bankruptcy attorney licensed in your state to ensure your case is handled properly.