To determine the feasibilily of a chapter 13 repayment plan, we would simply look at the debts to be repayed over the course of the chapter 13 bankruptcy. We then divide that number by the length of the chapter 13 plan; which can be from 36 to 60 months.
Jane Homeowner is $10,000 behind on her home loan. Her bank will not work with her on a solution because they will only accept full payment of the past due balance which Jane does not have. She considers filing a chapter 13 bankruptcy, but wants to know if she can afford the repayment. Through chapter 13 bankruptcy, Jane can repay the $10,000 past due over 5 years throught the bankruptcy trustee. $10,000 paid over 60 months would equal $166.66 per month. ($10,000 / 60 = $166.66).
In this example we explore a simple version of the calculations that enter into a chapter 13 plan, if Jane can afford her regular mortgage payment, and $166.66 for the plan payment, her plan would be feasible.
We welcome you to schedule your free bankruptcy consultation to fully determine if your chapter 13 plan will be feasible. This consultation is offered at no cost or commitment.