Sorry if I already asked this ?

[DUMBAGAIN]

I'm sorry if I've asked this before however I've searched and can't find the answer. In a chapter 13 if you make less than your states median income, then you don't have to payback 100%--is that correct? Then what decides then how much they each get?

[HHM]

There is no requirement to payback 100%. Your payment and the amount you payback is solely determined on disposible income.

Now, if you are under your state's median income, what that means is you can be in a 36 month plan istead of a 60, to say it another way, you are not required to be in a 60 month plan.

[optimistic1]

Im pretty sure that if you are under state median income, you would be in a 36 to 60 month plan, and what determines your payback percentage is how much DMI(disposable monthly income) you have when you do the means test, by subtracting Schedule (J) from Schedule (I) (Income minnus expenses).

Other factors come into play as well, secured creditors (claims) are paid first, and then unsecured.

If you have very little DMI, and its only enough to pay your secured claims, then the unsecured would get 0%, unless you are in a 10% minimum to unsecured district.

This is my rough knowledge of the basics.

I am sure that Justbroke can fill you in better than I can.

[justbroke]

As HHM directed you, your income, first only determines what the minimum length of your Plan (36 months or 60 months).

Your creditors, the amount of debt and your disposable monthly income (DMI) determines how much you'll pay back to unsecured creditors. Also, the value of the non-exempt equity you have in property (real or otherwise) will determine the minimum you must pay back to unsecured creditors.

Then, your secured debt arrearages, and back taxes (income and/or property) will also determine the length of your Plan.

It's a complex formula. Suffice it to say that your DMI is what determines what you'll pay in most cases.

[HHM]

As HHM directed you, your income, first only determines what the minimum length of your Plan (36 months or 60 months).

Your creditors, the amount of debt and your disposable monthly income (DMI) determines how much you'll pay back to unsecured creditors. Also, the value of the non-exempt equity you have in property (real or otherwise) will determine the minimum you must pay back to unsecured creditors.

Then, your secured debt arrearages, and back taxes (income and/or property) will also determine the length of your Plan.

It's a complex formula. Suffice it to say that your DMI is what determines what you'll pay in most cases.

LOL, exactly. I try not to get into too much more detail as it creates more confusion and questions

Bottom line, if all you have left over at the end of the month is $200 of DMI, then, in a 60 month plan, then you will pay back $12K to your plan. That is the total of your plan, how specifically that gets divided up depends on your particular circumstances.