Comprehensive Chapter 13 Repayment Plan Calculator

An essential tool for estimating your monthly obligations in a Chapter 13 bankruptcy filing.

Estimate Your Plan Payment

What is a chapter 13 repayment plan calculator?

A chapter 13 repayment plan calculator is a financial tool designed to estimate the monthly payment a debtor would need to make under a Chapter 13 bankruptcy. This type of bankruptcy, often called a “wage earner’s plan,” allows individuals with a regular income to reorganize their debts and pay them off over a period of three to five years. Unlike Chapter 7, which involves liquidating assets, Chapter 13 focuses on creating a manageable repayment structure. This calculator helps you understand what that structure might look like by considering the most critical factors that determine the payment amount.

Anyone considering Chapter 13 should use this calculator to get a preliminary, non-binding estimate of their potential financial commitment. A common misunderstanding is that you simply pay what you can afford. While your disposable income is a primary factor, the law ensures creditors receive at least as much as they would in a Chapter 7 liquidation—a rule known as the “best interest of creditors” test. Our chapter 13 repayment plan calculator incorporates this crucial duality.

The Chapter 13 Repayment Plan Formula and Explanation

The core of the Chapter 13 payment calculation is determined by two main tests, and your payment is based on whichever result is higher, plus the trustee’s administrative fee. The formula can be expressed as:

Total Monthly Payment = [ MAX(Monthly Disposable Income, Value of Non-Exempt Assets / Plan Months) ] / (1 – Trustee Fee %)

The two tests are:

1. The Disposable Income Test: This requires you to contribute all of your “disposable income” to the plan each month. Disposable income is what’s left over from your total income after subtracting reasonably necessary living expenses, as defined by bankruptcy law.
2. The “Best Interest of Creditors” Test: This legal standard ensures that your unsecured creditors receive at least as much money through your Chapter 13 plan as they would if you had filed for Chapter 7 bankruptcy. In a Chapter 7, your non-exempt assets would be sold to pay creditors. Therefore, your Chapter 13 plan must pay out at least the value of those non-exempt assets over its life.

Our chapter 13 repayment plan calculator first determines the required monthly payment based on both tests, takes the higher of the two, and then calculates the final amount including the trustee’s fee. The trustee’s fee is a percentage of the total payment made, which is why the base payment is divided by (1 – fee percentage).

Variables in Chapter 13 Calculation

Variable	Meaning	Unit	Typical Range
Monthly Disposable Income	Income left after all necessary expenses.	Currency ($)	$0 – $5,000+
Value of Non-Exempt Assets	Liquidation value of assets not protected by law.	Currency ($)	$0 – $1,000,000+
Plan Duration	The length of the repayment plan.	Months	36 or 60
Trustee Fee	Administrative fee for the Chapter 13 Trustee.	Percentage (%)	3% – 10%

For more details on debt calculations, see our guide on the Debt-to-Income Ratio Calculator.

Practical Examples

Example 1: Income-Driven Plan

• Inputs:
  • Monthly Disposable Income: $800
  • Value of Non-Exempt Assets: $10,000
  • Plan Duration: 60 Months
  • Trustee Fee: 10%
• Calculation:
  1. Payment from Assets: $10,000 / 60 months = $166.67/month
  2. Base Payment: MAX($800, $166.67) = $800
  3. Total Monthly Payment: $800 / (1 – 0.10) = $888.89
• Result: The plan is based on disposable income. The estimated monthly payment is $888.89.

Example 2: Asset-Driven Plan

• Inputs:
  • Monthly Disposable Income: $200
  • Value of Non-Exempt Assets: $40,000
  • Plan Duration: 60 Months
  • Trustee Fee: 10%
• Calculation:
  1. Payment from Assets: $40,000 / 60 months = $666.67/month
  2. Base Payment: MAX($200, $666.67) = $666.67
  3. Total Monthly Payment: $666.67 / (1 – 0.10) = $740.74
• Result: The “best interest of creditors” test dictates the payment. The estimated monthly payment is $740.74.

How to Use This chapter 13 repayment plan calculator

Using this calculator is a straightforward process to gain insight into your potential obligations:

1. Enter Your Disposable Income: Input your calculated monthly disposable income. This is your gross income minus taxes, mandatory deductions, and IRS-standard living expenses.
2. Enter Asset Value: Provide the total market value of any property and assets you own that would not be protected by state or federal bankruptcy exemptions. You might need help from a guide on exemptions to determine this.
3. Set the Trustee Fee: The default is 10%, which is the maximum in many districts. You can adjust this if you know the specific rate for your bankruptcy district.
4. Select Plan Duration: Choose either 36 or 60 months. A 60-month (5-year) plan is required if your income is above your state’s median income.
5. Review Your Results: The calculator instantly displays your estimated total monthly payment, along with the total amount you’ll repay and the portion that goes to the trustee. The intermediate values show which test (income or assets) is driving your payment amount.

Key Factors That Affect Chapter 13 Payments

Several critical elements influence the final payment amount calculated by any chapter 13 repayment plan calculator. Understanding them is key to a successful plan.

• Disposable Income: This is the engine of most Chapter 13 plans. Any increase or decrease in your income or necessary expenses directly impacts this number.
• Non-Exempt Equity: The more unprotected assets you have, the higher the minimum “floor” for your repayment plan. This is a common issue for homeowners with significant home equity.
• Priority Debts: Certain debts, like recent tax obligations or child support arrears, must be paid in full through the plan. These amounts are added on top of the base calculation.
• Secured Debt Arrears: If you are catching up on missed mortgage or car payments, those arrears must also be paid through the plan, increasing the total payment. For a deeper analysis, you may want to compare Chapter 7 vs Chapter 13.
• Plan Length: A 36-month plan requires a higher monthly payment to meet the same repayment goal as a 60-month plan.
• The Trustee Fee: While it’s a percentage, a higher base payment means a larger dollar amount goes to the trustee, further increasing the total payment required to fund the plan.

Frequently Asked Questions (FAQ)

1. Is the calculator’s estimate guaranteed?

No. This is an educational tool. A final Chapter 13 payment is determined by a bankruptcy court and can be affected by many factors not included here, such as priority debts, secured arrears, and local court practices.

2. What if my income changes during the plan?

If your income changes significantly, you or the trustee can petition the court to modify your plan payment amount to reflect your new financial situation.

3. Why is my payment higher than my disposable income?

This happens when the “best interest of creditors” test requires a higher payment. The value of your non-exempt assets, when divided by the plan length, is greater than your monthly disposable income.

4. Does this calculator include mortgage or car payments?

No. This calculator estimates the payment to the Chapter 13 trustee. You typically continue to make your regular ongoing mortgage and car payments separately, outside of this calculated amount (unless you are surrendering the property).

5. What are “non-exempt” assets?

These are assets that are not protected by bankruptcy laws. Exemptions vary by state, but typically protect a certain amount of equity in your home, a vehicle, retirement accounts, and personal belongings. Anything above the exemption limits is non-exempt.

6. How is “disposable income” officially calculated?

It is calculated using a complex formula known as the “Means Test,” which compares your income to the median income in your state and dictates which expenses are allowable. This calculator uses a simplified input for estimation purposes.

7. Can I choose a 3-year plan if I want to finish faster?

You can only use a 3-year (36-month) plan if your current monthly income is less than your state’s median income for a household of your size. Otherwise, a 5-year (60-month) plan is mandatory.

8. What is the role of the Chapter 13 Trustee?

The trustee is an official appointed by the court to oversee your case. They collect your monthly payments, distribute the funds to your creditors according to the plan, and ensure you are complying with all legal requirements. Their fee covers the administrative cost of this work.