Chapter 13 Bankruptcy Expense Calculator (2018 Standards)

Estimate your disposable income based on Chapter 13 guidelines from 2018.

Housing & Utilities

Transportation

Living Expenses

Taxes & Deductions

---

Understanding the Chapter 13 Expense Calculation (2018 Focus)

This tool helps you estimate your “disposable income” for a Chapter 13 bankruptcy plan, specifically using the logic and framework from around 2018. The core of a Chapter 13 case is the repayment plan, which is funded by your disposable income—the amount left over after subtracting allowable living expenses from your earnings. The amount of expense information for use in ch 13 bankruptcy calculations 2018 was determined by a combination of your actual costs and standardized figures from the IRS.

This calculation was, and still is, a critical step. It determines the minimum amount you must pay to your unsecured creditors over the life of your three- or five-year plan. If you want to learn more about the means test, you can read about the Chapter 13 Means Test.

The Chapter 13 Disposable Income Formula

The formula is straightforward in principle but complex in practice. It involves subtracting a detailed list of expenses from your Current Monthly Income (CMI).

Projected Disposable Income = Current Monthly Income - Allowed Monthly Expenses

“Allowed Monthly Expenses” is the key. It’s not just what you actually spend. It’s a mix of your actual payments for certain debts (like mortgages and car loans) and national or local standard amounts for other living costs. This process ensures that debtors across the country are treated uniformly.

Key Variables in the 2018 Expense Calculation

Variable	Meaning	Unit / Type	Typical Range
Current Monthly Income (CMI)	Your average gross income over the six months before filing.	USD ($)	Varies Greatly
Secured Debt Payments	Actual monthly payments for debts like mortgages or car loans.	USD ($)	$300 – $3,000+
IRS National Standards	Standardized allowance for food, clothing, and other basic items.	USD ($)	$600 – $1,700+ (Varies by family size)
IRS Local Standards	Standardized allowance for housing and transportation costs.	USD ($)	Varies by county/state
Priority Debts	Payments for debts like recent taxes or domestic support.	USD ($)	$0 – $1,000+

Practical Examples from 2018

Example 1: Below-Median Income Filer

A single individual in 2018 with a monthly income of $3,500. Their expenses are mostly actual costs.

• Inputs: Income: $3,500, Rent: $1,100, Utilities: $200, Car Payment: $300, Operating Costs: $250, Food/Clothing: $500, Taxes: $700, Medical: $100.
• Total Expenses: $3,150
• Result: Their disposable income would be approximately $350 per month. This amount would form the basis of their plan payment.

Example 2: Above-Median Income Filer

A family of four in 2018 with a combined monthly income of $8,000. They are subject to more standardized expenses.

• Inputs: Income: $8,000, Mortgage: $2,000, Utilities: $400, Car Payments (2): $750, Operating Costs: $450, Taxes: $1,800, Medical: $400, Support Payments: $500. Their food/clothing spending is $1,200, but for the 2018 means test, they might be held to the IRS National Standard (e.g., approx. $1,694 for a family of four in late 2018, though this specific standard included more than just food and clothing).
• Result: After applying all deductions, their disposable income might be calculated at $800 – $1,200 per month, which they would need to commit to their 5-year plan. For details on plan duration, see our guide on 3-Year vs. 5-Year Chapter 13 Plans.

How to Use This Expense Information Calculator

Follow these steps to get an estimate of the expense information for use in ch 13 bankruptcy calculations 2018:

1. Enter Your Gross Income: Start with your total monthly income before any taxes or deductions are taken out.
2. Fill in Your Expenses: Go through each field and enter your average monthly spending. Be as accurate as possible. For categories like food and utilities, use a realistic average.
3. Calculate: Click the “Calculate” button to see the results.
4. Review Your Disposable Income: The primary result shows your estimated monthly disposable income. This is a crucial figure in a Chapter 13 case. The intermediate results provide a breakdown of your major expense categories.
5. Analyze the Chart: The chart gives you a quick visual of where your money is going, helping you understand the proportions of your budget.

Key Factors That Affect Chapter 13 Expenses

Several factors can significantly influence your allowed expenses and, therefore, your plan payment.

• Household Size: The IRS standards for food, clothing, and other items are based on the number of people in your household.
• Geographic Location: Housing and transportation allowances are based on local standards, which vary significantly by state and even county.
• Secured Debts: If you are keeping a house or car, the full contractual payment is generally a deductible expense.
• Priority Debts: Debts like recent tax obligations or child support must be paid in full through the plan, and these payments are deductible.
• Healthcare Costs: You can deduct your actual health insurance premiums and a standard amount for out-of-pocket medical expenses.
• Charitable Contributions: A history of regular charitable giving can sometimes be included as a deductible expense, up to a certain limit. For more on this, check our article on Deducting Charitable Contributions.

Frequently Asked Questions (FAQ)

What were the biggest changes to expense calculations around 2018?

The primary framework was set by the 2005 BAPCPA law. By 2018, the process was well-established, with changes mostly involving the periodic updates to the IRS National and Local Standards to account for inflation. Understanding these standards was key to accurate expense information for use in ch 13 bankruptcy calculations 2018.

Can I just use my actual expenses for everything?

No. For above-median income filers, the means test requires using the IRS standard amounts for many categories, even if your actual spending is higher. You can, however, deduct your actual expenses for things like mortgage, car payments, and taxes.

What if my expenses are higher than the IRS standards?

In some limited circumstances, you may be able to claim higher actual expenses if you can prove they are reasonable and necessary for the health and welfare of your family. This often requires significant documentation and is subject to trustee and court approval.

Are my 401(k) contributions or loan repayments deductible?

Voluntary 401(k) contributions are generally not deductible. However, repayments for loans taken from a 401(k) plan are often considered a deductible expense, as failing to pay could risk the retirement account. Check out our guide on 401(k)s and Bankruptcy.

Is this calculator a substitute for legal advice?

Absolutely not. This is an informational tool only. A qualified bankruptcy attorney is essential for navigating the complexities of the means test and ensuring your filing is accurate.

Do I include credit card payments as an expense?

No. Credit card debts are unsecured debts that the Chapter 13 plan is designed to address. You do not list your monthly credit card payments as an ongoing expense in this calculation.

What if my income or expenses change after filing?

If you have a significant, sustained change in your financial situation, your plan payment may be modified. You must report such changes to the Chapter 13 trustee.

Where did the 2018 standard amounts come from?

The standard amounts are published by the U.S. Trustee Program based on data from the IRS and the Census Bureau. They are updated periodically.

Related Tools and Internal Resources

For more detailed information, please explore our other resources:

• The Bankruptcy Means Test: A deep dive into how the means test works for both Chapter 7 and 13.
• Chapter 7 vs. Chapter 13: Understand the key differences between the two main types of consumer bankruptcy.
• Secured vs. Unsecured Debt: Learn why the classification of your debt is so important in bankruptcy.