September 25th, 2009 by Reed Allmand 
When a debtor files Chapter 13 bankruptcy, the bankruptcy court and debtor work together to create an affordable monthly repayment plan that will allow the debtor to maintain a typical middle-class lifestyle. The debtor makes payments for 3 to 5 years and at the end of the term the debt that was not repaid is discharged.
To estimate your Chapter 13 bankruptcy monthly repayment amount, follow the formula below:
- Determine your net monthly income and monthly expenses. Your monthly net income is the money left after taxes and other pre-tax deductions are made. Your expenses include all of the basics of life such as mortgage/rent, utilities, food, car note, groceries, household products etc. Don’t include payments for a 2nd home, sailboat, or other luxury items and don’t include unsecured debt payments. The bankruptcy court is unlikely to allow you to keep luxury items such as sailboats or a summer home that are financed. And unsecured debt will be repaid through the Chapter 13 bankruptcy repayment amount.
- Subtract your monthly expenses from your net monthly income, this amount is your estimated Chapter 13 bankruptcy payment. Remember it is only an estimate and could be more or less depending on other factors that may come into play during your bankruptcy.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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