When you pay, what you pay
Thirty days after filing, the first payment under you Plan will be due. By then you will have heard from the TRUSTEE, and you will pay the amount in the Plan filed by your attorney.
The amount you pay will depend on 1) the goals you have in the case and 2) how the rules apply to your financial situation. Generally, the amount is what you would have left after paying living expenses. This can change based on the LIQUIDATION TEST, and also if you are paying SECURED CREDITORS in the Plan.
Under the Bankruptcy Reform Act there may also be certain tests based on your income and expenses. The law changed in 2005 and makes it a bit harder to complete Chapter 13 because there may be limits on how much your "cost of living" can be. The law says you are limited to IRS Collection Guidelines for certain cost of living elements. This is all based on family size and special needs can be taken into consideration.
Even if you are behind on some payments to SECURED CREDITORS, such as your home loan, Chapter 13 can help. The late payments can be put into the PLAN, and you can take up regular payments outside of your PLAN.
G. Paul Marx, A Professional Law Corporation
Chapter 13 Topics: TRUSTEE YOU GET THE PLAN
THE U.S. Congress authorized us by law to state that as to our Bankruptcy Work at this Law Firm, WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.