chapter 13 household expenses reasonable budget examples

You can spread the balance over the plan. If you're behind on the payment when you file, you'll catch up by paying the overdue amount through the plan. If you have a mortgage or vehicle loan, you'll make one of two choices: Return the property to the lender or keep the property and pay as agreed, with a couple of exceptions. But the lender must ask the court to lift the automatic stay first. If you don't pay, the lender can use lien rights to take the property back, even in bankruptcy. A 'secured' debt is an obligation guaranteed by collateral-usually, the property you purchased. If you want to keep your home, car, or other property securing debt, in most instances, you'll pay your usual monthly payment amounts. Here's where you can find more priority debt categories (they're the same in Chapters 7 and 13). personal injury and wrongful death awards from driving under the influence, and.back spousal and child support owed to an ex-spouse or child.recently-incurred federal and state taxes (go back three years).Add up the entire amount owed for these common priority debts: These are the 'important' obligations your plan must pay in full. Your unsecured creditors will share any remaining income, so you'll address unsecured obligations last. To figure out your monthly payment amount, you'll start by calculating the bills you must pay in full, which are your secured and priority debts.

Filers who qualify for a three-year plan will have more payment leeway. This article assumes you'll pay into a five-year plan. Your state's median income by family size is on the US Trustee Program's means testing page. We provide links at the end of the article. You'll use Chapter 13 means test forms to confirm your plan length.

If that figure is more than your state's median income, your plan will last five years. If that figure is less than your state's median income, your plan will be three years, and you'll qualify for Chapter 7. Determining how long your plan will last depends on your current monthly income, which is your average gross monthly income during the six months before filing for bankruptcy.

Chapter 13 household expenses reasonable budget examples