Chapter 13 Facts For Debtors Filing For Bankruptcy

Over the median income debtors will have their net disposable income calculated by using the Means Test. Thus, actual figures of schedules I and & will not govern the amount required to be paid for over the median debtors. 

If the debtor and, if applicable, spouse’s income is over the median, the plan period must be for at least 5 years.  Thus, a 10% plan may be impossible since the means test applies and the plan must run 60 months.  Never guarantee a percentage that the debtor will have to repay.  There are too many factors, not the least of which is filed proof of claims, which dictate the amount and percentage page to creditors.

The debtor must be current on all post-filing domestic support payments in order for a case to be confirmed.  I have not seen this be an issue.  The debtor does not have a large window of time to fall behind from filing to confirmation (typically 2-3 months).

Debtor cannot cram down a vehicle acquired for personal use within 910 days of filing (2.5 years).  This anti-cram down section deals with PMSI (purchase money security interest) vehicles only.  Thus, a title-loan, or non-PMSI vehicle financing can be crammed down if made anytime before filing.