When considering whether to file for Chapter 13 bankruptcy, it is important to consider whether you will be able to afford the payments required to fulfill your bankruptcy plan.
In Chapter 13 bankruptcy, you will be required to make a payment to a trustee once a month for 3 to 5 years. This payment will be used to pay back secured debts, such as mortgage arrears and car loans, as well as non-dischargeable taxes. Any remaining funds will be used to pay back unsecured creditors.
To determine whether you can afford the Chapter 13 bankruptcy payment, you will need to consider your regular living expenses and your disposable income. Your disposable income is the amount of money you have left after paying your regular living expenses. If you have enough disposable income to fund the Chapter 13 payment, you may be able to afford to make the payment and fulfill your bankruptcy plan.
However, it is important to note that the amount you will be required to pay back through your Chapter 13 bankruptcy plan will depend on several factors, including your non-exempt equity and assets and your income in the six months prior to filing for bankruptcy. It is best to consult with a bankruptcy attorney to understand the specific laws in your jurisdiction and to determine the best course of action for your specific situation.