How to Use a Chapter 13 Bankruptcy Calculator
A Chapter 13 bankruptcy allows a person or family to repay debts without having to liquidate assets such as homes or cars. A bankruptcy calculator helps determine which creditors will be paid and how much, and is used to build the repayment plan.
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Instructions
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Gather information on who you owe, how much and what the interest rate is for each loan, credit account or other debt. If you're married, you must gather this information for your spouse, even if your spouse isn't filing bankruptcy with you.
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Put together information on your current income and monthly living expenses. Include as much detail as you can. You must have your spouse's income and expense information also.
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Enter the information into the bankruptcy calculator, which will produce a tentative repayment plan. You can find bankruptcy calculators, also called means test calculators, online. Software that helps you file bankruptcy without an attorney also contains bankruptcy calculators.
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Answer some basic questions about where you live to allow the calculator to enter U.S. Census data regarding the median income and expenses in your area. If you are below the median income, your repayment plan may be shortened. You may also be eligible to file for bankruptcy under Chapter 7.
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Fill in information such as whether you incurred the debt while on active duty in the U.S. military, you have childcare expenses and if you regularly take public transportation. This information will help determine a repayment plan that you can pay without undue hardship on yourself or your family.
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Work with your attorney or the court trustee to make adjustments to the plan that will satisfy your needs as well as the requirements of your creditor and the court. Most Chapter 13 bankruptcy repayment plans are designed to be completed in 5 years.
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Tips & Warnings
Although it's possible to use a bankruptcy calculator and declare bankruptcy on your own, an attorney can be an enormous help. He or she can ask for adjustments to the repayment plan and negotiate for the best outcome for you and your family.
Be aware that the bankruptcy calculator is not designed to allow you to continue to pay all monthly expenses. For example, you may have to opt for a less expensive cable television package, give up your health club membership and make other lifestyle adjustments.
A Chapter 13 bankruptcy will affect your credit rating for several years, preventing you from buying a home, new cars or making other large purchases on credit.
