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Calculating a Chapter 13 Bankruptcy Payment

We understand that for those just beginning the chapter 13 bankruptcy process, the prospect of debt repayment can bring anxiety and uncertainty. We want to help you feel comfortable with the repayment process.

So, we’ll shed light on how to calculate a chapter 13 payment, and give valuable insight on what to expect.

Understanding Chapter 13 Repayment Length

Before you can understand how to calculate a chapter 13 payment, it’s essential to know more about repayment length.

This is a major determining factor in your monthly payment amount.

With chapter 13 bankruptcies, monthly payments occur throughout a three to five-year period. You work with your bankruptcy attorney to submit a repayment plan for the court’s approval, detailing your plan to repay creditors over three to five years.

Your monthly income—in relation to the median income in the state where you reside—typically determines the length of time that your personalized repayment plan lasts.

Those earning below the median income in their state, a three-year plan will likely be the length of repayment.

However, if you earn more than the state median income, you’ll pay into a five-year plan. You can modify this length of time in either scenario with the court’s permission.

The approved length of repayment will provide the basis for calculating your chapter 13 payment.

Minimum Monthly Chapter 13 Payment Amounts

To determine your monthly payment amount, you must complete the chapter 13 means test as a part of your paperwork submission to courts.

This not only determines how long your repayment plan will last but also the amount you must pay non-priority unsecured creditors in your bankruptcy.

You always need to consult with a trusted attorney for specifics related to your financial circumstances. Keep in mind how different forms of debt will influence your monthly payment amount:

  • Secured Debts: Aside from mortgage arrears or lien stripping, you are typically required to pay off the entire loan through your repayment plan.
  • Unsecured Debts: Some of this debt is dischargeable in chapter 13 bankruptcy. The chapter 13 means test will help determine what portion of this debt to include in your chapter 13 calculation.
  • Priority Debts: Debts such as alimony, child support, or certain taxes are non-dischargeable in bankruptcy and must be repaid during your repayment plan.
  • Fees and Interest: Bankruptcy trustees gain a percentage of liquidated assets, as well as all the money they distribute to your creditors. Interest must also be paid, which is typically just slightly above the national prime rate. In addition to debts, both factors will influence how chapter 13 payments are calculated in your case.

Let Us Help You Calculate Your Chapter 13 Payment

At Parker & DuFresne, we are in the business of bringing financial restoration to clients across Northeast Florida.

We understand that chapter 13 bankruptcy clients need the right repayment plan. This is one of the most important keys for a successful outcome.

Seek Out an Experienced Bankruptcy Attorney

The decision to file for bankruptcy is a difficult and lengthy one that should not be done without the legal guidance of a bankruptcy attorney that you trust. At Parker & DuFresne, we provide relief, restoration, and renewal through a compassionate approach.

Our goal is to get clients across Northeast Florida back on the road to financial stability. We specialize in bankruptcy law. Through a thorough consultation, our attorneys will help you determine if bankruptcy is the right solution for you. Contact us today to learn more!


Schedule Your Bankruptcy Consultation with Parker & DuFresne


If you have any other questions about the process of filing for bankruptcy, be sure to contact an attorney.

Contact us today to learn more!

If you’re thinking about filing for bankruptcy in Florida, it’s important to meet with a bankruptcy attorney. You can better understand your specific situation and the types of relief that might be available to you.

Call us today for a free consultation and we’ll get you on your path toward financial freedom.

Where Can I Find Help?

Dealing with bankruptcy doesn’t have to be a single-person job. The bankruptcy lawyers at Parker & DuFresne will help you determine the best course of action to help you get out from under your debt and move forward to a debt-free future.

Call today at 904-733-7766 for a free consultation, or click the button at the top of the page to schedule online.

Parker and DuFresne

Parker and DuFresne