1. What is Chapter 13 Disposable Income?

Disposable income in Chapter 13 bankruptcy is the amount of money left after subtracting allowed expenses from your current monthly income. This determines how much you can pay creditors through your repayment plan.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Current Monthly Income — Your total monthly income from all sources
• Allowed Expenses — IRS-approved necessary living expenses

Explanation: The calculation determines how much income remains after covering essential expenses, which must be paid to creditors in a Chapter 13 plan.

3. Importance of Disposable Income Calculation

Details: Accurate disposable income calculation is crucial for creating a feasible repayment plan that meets bankruptcy court requirements while allowing you to maintain basic living standards.

4. Using the Calculator

Tips: Enter your total monthly income and IRS-allowed expenses in USD. Both values must be positive numbers. The calculator will show your disposable income available for debt repayment.

5. Frequently Asked Questions (FAQ)

Q1: What counts as current monthly income?
A: All income from employment, self-employment, government benefits, rental income, and other regular sources.

Q2: What are allowed expenses?
A: IRS standards for housing, food, transportation, healthcare, and other necessary living expenses.

Q3: How does this affect my repayment plan?
A: Your monthly plan payment is typically your disposable income divided by 36 or 60 months.

Q4: Can I dispute the allowed expenses?
A: Yes, you can petition for higher expenses if you have special circumstances (like medical conditions).

Q5: Is this calculation final?
A: No, the bankruptcy trustee will verify your numbers during the means test process.