Legal Question in Bankruptcy in California
Just a question
I am thinking about filing for bankruptcy since I am starting to have trouble keeping current on some credit card paymments. I am curious how the court decides how much money you will have to pay back if you file chapter 13. Do you have to pay back all/part/none?
2 Answers from Attorneys
Re: Just a question
Determining the amount of monthly payment in a Chapter 13 is an extremely complicated process and depends on numerous factors, including the amount of your income for the 6 months prior to filing your case, the amount of your current income and expenses, and the amount and type of your debts. You may be required to pay back anywhere from 0%-100% depending on the calculations.
Re: Just a question
A Chapter 13 plan depends on your "disposable" income -- the difference between your net take-home amount and your expenses without the debts. Then, it's multipled by 36 or 48 months, your debts are totaled, and a percentage payment is reached.
With a Chapter 7, usually a person doesn't have to pay back the creditors. Feel free to give me a holler if you have specific questions. Good luck to you.
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