Calculating a Chapter 13 Plan payment can be complicated and I recommend that this be done only by an experienced Utah Chapter 13 bankruptcy attorney. However, here are some basic principles that govern what must be repaid.

You must pay your extra disposable income. First, your income is compared to the median income for the state of Utah. If your income is above that level then we will use a means test form to calculate the minimum that must be repaid.
Second, we prepare a budget with your actual and reasonable monthly expenses (including an allowance for cable, internet, and some recreation). Any excess is required to be paid into the plan.

You must satisfy the Best Interest of Creditors Test. Your Chapter 13 Bankruptcy must pay creditors at least as much as they would have received if you filed a Chapter 7 liquidation case. Essentially, the more non-exempt assets you have, the higher your payment will be. 

Posted in: Chapter 13 Frequently Asked Questions