Estimate your monthly reorganization plan payments
Total income before taxes
Rent, food, utilities, etc.
Back taxes, child support, etc.
36 Months (3 Years)
60 Months (5 Years)
Value of assets not covered by bankruptcy exemptions
Your Estimated Plan Results
Estimated Monthly Payment:
Total Repayment over Plan:
Understanding the Chapter 13 Bankruptcy Calculation
A Chapter 13 bankruptcy, often called a "wage earner's plan," allows individuals with regular income to develop a plan to repay all or part of their debts. Unlike Chapter 7, which liquidates assets, Chapter 13 focuses on a 3-to-5 year repayment schedule. The monthly payment is determined by your "disposable income" and the "best interest of creditors" test.
Key Factors in the Calculation
Disposable Income: This is calculated by taking your gross monthly income and subtracting IRS-standardized necessary living expenses.
Priority Debt: Debts like child support, alimony, and recent tax obligations must usually be paid in full through the plan.
Non-Exempt Equity: Unsecured creditors must receive at least as much as they would have if you filed for Chapter 7. This means if you have $10,000 in equity that isn't protected by an exemption, your plan must pay at least $10,000 to unsecured creditors.
Plan Duration: If your income is above the state median, you are generally required to file a 60-month plan. If below, you may qualify for a 36-month plan.
Chapter 13 Repayment Example
Consider a filer with the following financial profile:
Category
Amount
Monthly Gross Income
$4,500
Necessary Expenses
$3,600
Calculated Disposable Income
$900
Priority Debt (Back Taxes)
$15,000
In this scenario, over a 60-month plan, the filer would pay $900 per month. This total ($54,000) is enough to cover the $15,000 in priority debt, with the remaining $39,000 (minus trustee fees) going toward unsecured creditors like credit card companies.
Why Use a Chapter 13 Calculator?
Using a Chapter 13 bankruptcy calculator helps you determine if the monthly payment is feasible before you commit to the legal process. If your disposable income is lower than the amount required to pay off your priority debts over 60 months, you may need to increase your payments or find alternative solutions. Note that this tool provides an estimate; actual figures are subject to trustee fees (usually around 10%) and local court standards.
function calculateBankruptcyPlan() {
var grossIncome = parseFloat(document.getElementById('grossIncome').value) || 0;
var monthlyExpenses = parseFloat(document.getElementById('monthlyExpenses').value) || 0;
var priorityDebt = parseFloat(document.getElementById('priorityDebt').value) || 0;
var nonExemptEquity = parseFloat(document.getElementById('nonExemptEquity').value) || 0;
var planMonths = parseInt(document.getElementById('planMonths').value);
// 1. Calculate Disposable Income
var disposableIncome = grossIncome – monthlyExpenses;
if (disposableIncome < 0) disposableIncome = 0;
// 2. Minimum payment to satisfy Priority Debts over time
var minPriorityMonthly = priorityDebt / planMonths;
// 3. Minimum payment to satisfy Non-Exempt Equity (Liquidation Test)
var minEquityMonthly = nonExemptEquity / planMonths;
// 4. Determine base payment (Higher of disposable income or priority needs)
// The payment must cover priority debts AND satisfy the liquidation test.
var requiredMonthlyAmount = Math.max(disposableIncome, minPriorityMonthly, minEquityMonthly);
// 5. Add estimated Trustee Fee (Roughly 10%)
var finalMonthlyPayment = requiredMonthlyAmount / 0.90;
var totalCost = finalMonthlyPayment * planMonths;
// Display Results
document.getElementById('resultsArea').style.display = 'block';
document.getElementById('monthlyPaymentResult').innerHTML = '$' + finalMonthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalPlanCost').innerHTML = '$' + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var warningText = "";
if (disposableIncome < minPriorityMonthly) {
warningText = "Note: Your disposable income is currently lower than what is required to pay off your priority debts. You may need to reduce expenses or increase income to qualify for this plan.";
} else {
warningText = "This estimate includes a 10% trustee fee. Actual fees vary by district.";
}
document.getElementById('planWarning').innerHTML = warningText;
// Scroll to results
document.getElementById('resultsArea').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}