CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How is your payment determined in a Chapter 13 Bankruptcy?

Transcription:

Hi, I’m attorney Robert Geller and I am a board certified consumer bankruptcy attorney in the state of Florida. Today I want to talk to you and help you understand how your payment is determined in a chapter 13 bankruptcy.

Basically, there are two major tests that determine your payment plan in chapter 13. The first thing we look at are your assets. In Florida, as long as you’ve lived here for two years and file for chapter 7 bankruptcy, you get to keep a total of $6,000 in assets. That doesn’t include your house and it doesn’t include your retirement plan. For the most part, you get to keep $6,000 in personal property, cash, a bank account, or a paid off vehicle.

If you do own a house, you only get to keep about $2,000 worth of property – $1000 personal property and $1000 in a house or vehicle.

So let’s say you own a house and you have a thousand dollars’ worth of household goods in your house. Maybe you have a vehicle worth $10,000. This means that you have $11,000 total in assets. You get to keep a thousand for your personal property and a thousand for your car. This puts you over what you’re allowed to keep by $9,000.

Chapter 13 bankruptcy looks at that same analysis to determine how much your payment would be. In that case, if you’re paying back the $9,000 and you’re in a five-year plan, you would be paying back roughly $150 a month for five years or 60 months.

There is another test – the means test – that determines how much your payment is and you pay the greater of the two tests. The means test is used in bankruptcy court to determine, first of all, whether you’re eligible to file a chapter seven bankruptcy. It’s also used to determine how much you’d have to pay back to your creditors.

In the means test, we take your paycheck, your gross income, and then we deduct everything that comes out of your paycheck. And then you get certain allowances for your mortgage payment or certain other allowances for food. You deduct your taxes, you deduct everything from that means test.

After the deductions, let’s say you’re left with $300. That $300 is what you’d pay each month in your payment plan. This is the case even if the first test, the asset test, said you only had to pay $150 because you must pay the greater of the two.

So that’s generally how a chapter 13 payment plan is determined. Some cases are more complicated, so you definitely should consult with an experienced bankruptcy attorney who can help you through all this and help you through determining that payment plan.

‘m Robert Geller and I want to help you build a bridge to a brighter future. If you have any questions about bankruptcy, chapter seven, chapter 13, or chapter 11, feel free to give us a call or message us on Facebook. Thank you.

 

Video Testimonials

Tampa Bankruptcy Law Blog

Are Medical Issues Forcing You Into Bankruptcy?

Many Americans wind up in debt because of medical bills. One of the most common reasons for filing bankruptcy in...
Read More

Law Offices of Robert M. Geller, P.A. Congratulates Danielle Austin For Receiving the Patriot Award from the United States Department of Defense

Award Recognizes Support of Guard and Reserve Members Who Work for the Organization Tampa, Florida, June 29, 2021 – The...
Read More

Is Your 401k or Other Retirement Savings at Risk in Bankruptcy’s Liquidation of Assets?

If you’ve spent years saving for retirement, putting that money at risk when you file for bankruptcy is likely one...
Read More

Tips to Help You Protect Your Assets When You File for Bankruptcy

One of the most intimidating aspects of filing for bankruptcy is protecting your assets. Worrying about whether bankruptcy puts their...
Read More

How Does Bankruptcy Affect Vehicle Ownership? What Assets Can You Keep through the Bankruptcy Process and Does It Affect Your Car?

Many people struggling financially avoid filing for bankruptcy because of concerns about losing important assets like their vehicles. The good...
Read More

Is There a Legal Way to Hide Assets When You File for Bankruptcy?

Filing for bankruptcy can be an overwhelming experience. The relief you receive when you file helps you feel better about...
Read More

Do Bankruptcy Trustees Take Your Savings? What is Considered an Asset in Bankruptcy and How Does It Affect the Money You’ve Saved?

Bankruptcy trustees gain access to a variety of your assets when you file. But what is considered an asset in...
Read More

Can Filing for Bankruptcy Help You Protect Your House?

fiHow filing for bankruptcy affects your home is one of the greatest concerns people have when they consult with bankruptcy...
Read More

Should I Refinance a Student Loan I Can’t Discharge in Bankruptcy?

Student loan debt is overwhelming many people. Could refinancing be the answer to help you avoid bankruptcy if your student...
Read More

Can Student Loan Consolidation Help You Avoid Bankruptcy?

One of the most common questions people have when they consider bankruptcy is “can student debt be discharged in bankruptcy?”...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions