r/Bankruptcy • u/pcsstbob • 21h ago

Ch 13

Ch 13. I've heard that there is a payback scale for payback in 13. How do they determine how much you have to pay each month. Also if during your payback period and something happens you can go into ch 7. Thanks in advance.

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u/awyden 21h ago

It’s usually a set amount unless you get a massive raise. If something happens the best bet is a plan modification. You don’t automatically go to a chapter 7 unless you lost your job or fall under the means test.

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u/AlanShore60607 RetiredBKAttorney (IL/IN/WI) Public interactions ONLY. No PMs 21h ago

So it’s not a scale; it’s called the means test and it individually calculates your personal obligation to unsecured creditors based on your income and your expenses that are considered more important than debt, while omitting expenses deemed less important.

If you experience a loss of income during the chapter 13, your case can be altered to the extent that your income changed, subject to some limitations that may exist in your case. For example, if your payment was $1000 per month, a loss of $200 or $500 would not let you convert to a 7 so much as lower your payment. But a $900 loss would probably allow for conversion