Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

How are monthly payments determined in Chapter 13 bankruptcy?

Many people are aware that there are different types of bankruptcy filings available for individuals carrying unmanageable debt. Not many people are aware of what their options are, though, until they start looking into filing for bankruptcy themselves.

Under the United States Bankruptcy Code, there are two major forms of personal bankruptcy: Chapter 7 and Chapter 13 bankruptcy. These two forms of bankruptcy have different goals and different requirements, and those thinking about filing should consult an experienced attorney have their situation evaluated in order to determine, first of all, whether filing for bankruptcy is appropriate, and second of all, which form of bankruptcy best suits their needs. 

In Chapter 13 bankruptcy, the goal is for the debtor to come up with a three to five year repayment plan to pay back creditors. Payments under the plan are made to the court, which in turn pays the creditors according to established rules. In order to determine the debtor's payments, the court needs to know the debtor’s disposable income.

Disposable income is determined by Form 22C, which details the sources and amounts of the debtor’s income. Filling out Form 22C may be fairly straightforward for many debtors, but sometimes issues can arise. When they do, the bankruptcy court has to determine how to resolve the issue. One of the reasons it is important to work with an experienced legal advocate in the bankruptcy process is that a debtor can benefit from having guidance from someone who understands the issues that can arise when it comes to reporting income.

In our next post, we’ll continue looking at this issue.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.