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Watch as you chapter 13 plan payment going to be this is an awful question because it's fairly complicated we'll start with the easiest one let's say you're below median income, and you file a chapter 13 you're proposing a base plan just to wipe out your debts your base plan is going to be about $100 a month for three years what happens in chapter 13 is we look at your income if your income is above the median level you may have some disposable income to pay your creditors back if your income is below the median level basically your chapter 13 plan payment pays enough money to pay the bankruptcy trustee handling fee and pay your bankruptcy attorney his chapter 13 fees the creditors generally get almost nothing on the dollar that's the simplest case of low median chapter 13 now let's make it more complicated let's say you have $12,000 of tax debt then let's stretch you plan out to a 60-month plan 60 goes into twelve two hundred dollars a month your payment will be at least two hundred dollars a month plus probably another hundred to cover the attorney fee in the trustees fees so three hundred dollars a month let's say you're 60 grand behind on your mortgage then you chapter 13 plan payment will be at least $1,000 a month because you're going to be catching up on those mortgage arrears over the life of the chapter 13 plan which is a 60 month planned so your chapter 13 plan payment let's just go with the base of $100 a month to cover attorneys fees and trustees fees then you start adding in mortgage arrears payments or tax payments that child support back alimony you can throw car payments into a chapter 13, so it changes this scenario now the hardest part of a chapter 13 is if you're above median, and you need to pay your creditors back some amount of money let's say the median income for you is $50,000 a year, and you're pulling in fifty-six thousand dollars a year, so you're six grand above median this means you have six thousand dollars a year of play money and let's say we can't take any deductions to get rid of that six thousand dollars, and then we would divide six thousand by 12 months you have five dollars a month of disposable income if you filed a chapter 13 today your plan payment be at least 500 a month for 60 months paying at least $30,000 back to creditors doesn't matter if you have two hundred thousand dollars of creditors they would get that thirty thousand dollars to wipe out the two hundred grand of death, but it's calculated based on what disposable income you have after your attorney runs the six-month average so let's recap simple case based plan about a hundred bucks a month if you're below median with no complications then you throw in taxes you throw in mortgage payments or car payments throwing anything else if your income goes above medium this is one you really need to sit down with your attorney and crunch to the numbers bankruptcy attorneys are generally nerdy transactional attorneys that sit around the table trying to...
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