Calculating Your Disposable Income<\/strong><\/p>\nAssuming that your lawyer has already determined that your income is more than the state median income, your attorney will then calculate your disposable income based on the expense amounts established by the IRS. These living expense categories include food and clothing. In addition, you can subtract your expenses for child support, spousal support, mandatory payroll deductions, out-of-pocket healthcare expenses, and payments for priority claims. You’ll also deduct your income, Social Security, self-employment, and Medicare taxes. The amount that remains is your disposable income, which you’ll pay to your creditors during the bankruptcy repayment period.<\/p>\n
For clear answers to your questions about Chapter 13 bankruptcy, you can trust the team at Cutler & Associates, Ltd. We’ve assisted families in the Chicagoland area since 1990.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chapter 13 bankruptcy is also sometimes called “wage earner bankruptcy” or “reorganization bankruptcy.” Unlike Chapter 7, which discharges most or all debts once the bankruptcy is finalized, Chapter 13 requires debtors to send their disposable income to the bankruptcy trustee for three to five years. This disposable income is used to pay debts during this […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts\/1027"}],"collection":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/comments?post=1027"}],"version-history":[{"count":2,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts\/1027\/revisions"}],"predecessor-version":[{"id":5640,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts\/1027\/revisions\/5640"}],"wp:attachment":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/media?parent=1027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/categories?post=1027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/tags?post=1027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}