Chapter 13 Bankruptcy Payment Plan Calculator 2026

What Is a Chapter 13 Bankruptcy Payment Plan?

A Chapter 13 bankruptcy is a court-supervised debt repayment plan filed under Title 11 of the United States Code. Unlike Chapter 7 (which liquidates non-exempt assets and erases most unsecured debt in roughly 4 months), Chapter 13 lets you keep your house, car, and other property while repaying creditors over a 3-year or 5-year plan from your future income. The plan is administered by a U.S. Trustee and confirmed by the bankruptcy judge, who must find that the plan meets the "best interests of creditors" test under 11 USC § 1325 — meaning unsecured creditors receive at least as much as they would have in a Chapter 7 liquidation. Source: U.S. Trustee Program (justice.gov/ust).

Filing fees are about $313 (2026), plus attorney fees that average $3,500 to $6,000 depending on district and complexity. Many districts allow attorney fees to be paid through the plan rather than upfront. The case stays on your credit report for seven years from filing.

2026 Means Test: 3-Year vs 5-Year Plan

The means test in 11 USC § 1322(d) determines your applicable commitment period. The court compares your annualized current monthly income (CMI × 12) to the median income for a household of your size in your state, published twice yearly by the U.S. Trustee Program based on Census Bureau data:

• Below state median: 3-year (36-month) plan, plan can pay less than 100% of unsecured debt as long as it commits all projected disposable income.
• At or above state median: 5-year (60-month) plan required. Disposable income calculated using IRS National and Local Standards (food, housing, transportation), not actual expenses.
• Hardship discharge: If you complete at least 36 months and circumstances beyond your control prevent finishing, the court may grant an early discharge under § 1328(b).

The plan must pay 100% of priority debts (back taxes within 3 years, child support arrears, alimony arrears) and cure all secured arrears (past-due mortgage and auto payments) over the plan period. Whatever is left of monthly disposable income goes to the unsecured pool — credit cards, medical bills, deficiency balances, personal loans.

How Monthly Disposable Income (DMI) Is Calculated

Monthly disposable income drives the entire plan. The formula in 11 USC § 1325(b)(2) is: gross household monthly income, minus payroll taxes and income tax withholding, minus reasonable and necessary monthly expenses for the maintenance and support of the debtor and dependents. Above-median filers must use IRS Local and National Standards rather than actual expenses for food, clothing, housing, utilities, transportation, and healthcare — which often produces a lower allowance than what the family is actually spending.

This calculator uses your reported actual expenses for a quick estimate. If your DMI comes out below zero, no Chapter 13 plan will be confirmed — you would be a Chapter 7 candidate instead (or need to reduce expenses). If DMI is positive but small, the plan may still be approved at less than 100% to unsecured creditors as long as the "best interests" test is met. The trustee fee (typically 5-10% nationally, capped at 10% per 28 USC § 586) is deducted from each monthly payment before disbursement to creditors.

Limits on Chapter 13 Eligibility (2026)

To file Chapter 13, an individual must have regular income and total noncontingent, liquidated debts below the statutory ceilings. As of June 2024, those ceilings were unified into a single $2,750,000 cap for combined secured and unsecured debt (Bankruptcy Threshold Adjustment and Technical Corrections Act, P.L. 117-151), with sunset and inflation adjustments scheduled for 2026 — verify the current cap with your district. Sole proprietors qualify; corporations and LLCs cannot file Chapter 13 (they file Chapter 11 instead). Last updated: May 3, 2026.

This calculator is an educational estimate and not legal advice. Real-world Chapter 13 plans are shaped by local rules, IRS standards, exemption choices, lien strip-down rules, and the specific case judge. Always consult a qualified bankruptcy attorney before filing.