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You may be disqualified if your payment is insufficient to meet the repayment requirements or demonstrate a reliable ability to repay. Our attorneys can assess your financial situation and recommend suitable alternatives.
Keeping cash when filing for bankruptcy does change somewhat between Chapter 7 and Chapter 13 bankruptcies. Under Chapter 13, you also have the $550 cash exemption along with a wildcard exemption up to $1,475, allowing you to keep $2,025 in cash under Chapter 13.
To calculate your monthly payment amount in a Chapter 13 bankruptcy, calculate your income for the six months before your bankruptcy filing. Deduct allowable expenses to determine your disposable income. Pay your priority debtors and any secured debts that you want to keep after the bankruptcy.
Its also called the disposable income test because, in most Chapter 13 cases, you must pay all your disposable income (Youll find the exception to the Chapter 13 bankruptcy disposable income rule at the end of the article).
THE BENEFIT OF CHAPTER 13 The court may discharge the remaining amount you arent able to pay over the years. Another benefit of Chapter 13 is that you may keep your important assets, like your home or car. You dont have to give up everything to pay your debts and move forward in a better financial position.
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What is Disposable Personal Income? After-tax income. The amount that U.S. residents have left to spend or save after paying taxes is important not just to individuals but to the whole economy. The formula is simple: personal income minus personal current taxes.
In addition to obtaining your credit report, you will need the following documents: Tax returns for the past four years. Paystubs or other proof of income for the last six months before filing. Bank account statements from the past 36 months. Recent mortgage statement(s) and real estate tax bills (if applicable)
The chapter 13 disposable income test is the courts way of ensuring that all your disposable income is going towards repaying your debts during your repayment period.

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