When you file a Chapter 13 bankruptcy, we will help you create a plan of repayment. Your plan will set forth how you intend to pay your creditors over a period of three to five years. Obviously, most Chapter 13 debtors are worried about how much their monthly payment will be. We will review your overall financial situation and help you understand how your Chapter 13 payment is calculated.
We will review your income and your expenses. You will complete the “means test” which will help us figure what your unsecured creditors should be paid in your plan. Unsecured creditors do not have to be paid in full, and typically they receive only a small percentage of what is owed to them.
There are numerous factors that impact the calculation of your monthly payment. For instance, the means test assumes that your income over the preceding six months is your income at the time of your filing. However, if you recently lost your job or your income has recently been reduced, the result can be an unrealistic amount. We know how to make adjustments to ensure that your plan payment will be as low as possible.
Please keep in mind that every case is different. If you are considering filing a Chapter 13 bankruptcy, you want to know what your monthly plan payment will be, and you would like to schedule a no-cost consultation, contact our office by completing the form on this website or calling us at (954) 516-2566.