Chapter 13 Plan Calculations & Revenue (June 2026)
Chapter 13 Payment Calculations
The Chapter 13 payment you calculated looks solid, but there can be complications with priority debts, best interest floors, and disposable income tests. Errors can lead to confirmation fights, amended plans, or case dismissals. Accurate calculations are crucial in avoiding these issues.
TLDR:
- Your Chapter 13 payment includes priority debts, secured arrears, disposable income, and trustee fees.
- Plans must pass feasibility, best interest, and disposable income tests at confirmation.
- Above-median debtors generally have longer plans and stricter expense caps.
- Only 35% of Chapter 13 cases reach completion, often due to intake math errors.
How Chapter 13 Payment Calculations Work
A Chapter 13 monthly payment is the result of three main obligations:
The Three Inputs That Set the Monthly Payment Floor
- Priority debts must be paid in full over the plan term. Recent income taxes, domestic support arrears, and certain administrative claims require 100% clearance before discharge.
- Secured debt arrearages must also be accounted for. These can include mortgage back-payments, vehicle arrears, and cramdown principal.
- Disposable income is calculated from Schedule I minus Schedule J. This indicates the remaining funds available for unsecured creditors, particularly for above-median debtors.
The total payment also includes the trustee's percentage fee.
The Three Calculation Tests Every Chapter 13 Plan Must Pass
| Test | What it Requires | The Floor it Sets |
|---|---|---|
| Feasibility | Plan payments cover secured arrears, trustee fees, and attorney fees | Minimum payment to fund the math |
| Best Interest | Unsecured creditors need at least what they would receive in Chapter 7 | Minimum dollar return to unsecureds |
| Disposable Income | All projected income above living expenses goes into the plan | Maximum the debtor can pay |
Disposable Income Calculation and the Above-Median vs. Below-Median Split
- Below-median debtors have a 36-month minimum plan, with income based on actual expenses.
- Above-median debtors have 60-month plans subject to IRS expense caps via Form 122C-2.
Trustee Fees and Their Impact on Total Plan Payments
Trustee fees, set per district, are usually capped at 10% of plan payments.
| Trustee Fee | Monthly Payment on a $60,000 Plan | Total Paid Over 60 Months |
|---|---|---|
| 4% | $1,042 | $62,500 |
| 7% | $1,075 | $64,516 |
| 10% | $1,111 | $66,667 |
Common Calculation Errors That Trigger Plan Rejection or Dismissal
Errors often include:
- Underestimating Schedule J expenses, which can lead to unmanageable payments.
- Overestimating Schedule I income results from using gross instead of net or one-time bonuses.
- Misclassifying debts disrupts plan structure, leading to potential rejections.
Why Chapter 13 Payment Calculators Deliver Estimates, Not Final Amounts
Calculators cannot factor in specific local rules, exemption choices, or judicial interpretations impacting feasibility.
Final Thoughts on Chapter 13 Monthly Payment Calculations
The Chapter 13 payment structure requires thorough calculations. While calculators provide estimates, consult an attorney for a plan that meets district-specific needs.
FAQ
Can I build a Chapter 13 payment plan without calculating all three confirmation tests? No, each plan must pass feasibility, best interest, and disposable income tests.
What's the difference between a Chapter 13 payment calculator and attorney plan preparation? A calculator gives a generalized estimate, while an attorney considers case-specific facts.
How much does the trustee fee add to my Chapter 13 monthly payment? It varies by district but generally runs between 6% to 10%.
What is the difference between above-median and below-median Chapter 13 disposable income calculations? The disposable income calculation varies significantly based on IRS standards, affecting payment amounts accordingly.
Why do most Chapter 13 payment calculation errors surface months after confirmation? Errors often stem from the initial input of Schedule I expenses or misclassification of debts, which may lead to early plan failures.