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A Chapter 13 petition for bankruptcy will likely necessitate a $500 to $600 monthly payment, especially for debtors paying at least one automobile through the payment plan. However, since the bankruptcy court will consider a large number of factors, this estimate could vary greatly.
How to File for Chapter 13 Bankruptcy Make sure Chapter 13 is the right choice. ... Analyze your debt. ... Value your property. ... Gauge your income. ... Fill out the bankruptcy forms. ... Take the required pre-filing course. ... File your forms and pay a fee. ... Provide the trustee with documents proving your income and other assets.
To calculate your monthly payment amount in a Chapter 13 bankruptcy, calculate your income for the six months before your bankruptcy filing. Deduct allowable expenses to determine your disposable income. Pay your priority debtors and any secured debts that you want to keep after the bankruptcy.
In most cases you will only pay back a portion of the outstanding debt to creditors. In a Chapter 13 bankruptcy a 36 to 60-month payment plan is proposed to the court to repay your debt. A 36-month plan is proposed to the court if your gross income is below the median income for your state.
Chapter 13 and debt Firstly, all Chapter 13 payment plans must repay all priority claims and administrative expenses in full. These types of debts include taxes, child support, alimony, attorneys' fees and court costs.