Chapter 13 Wage Earner Overview

Only for Individuals

• 355k unsecured maximum
• $1,010,000 secured debt maximum
• 60 month payout maximum
• Get to keep non-exempt assets, unless you are buying them over 5 years
• Buy assets out of income
• Disposable income goes to trustee to buy assets
• Admin secured 1st, pre petition arrears 2nd, taxes unsecured 3rd
• Tax returns must be submitted to Trustee annually so payments can be adjusted
• Plan can be modified to cash out plan and discharged remaining unsecured
• Can lien strip 2nd if no equity
• If above median income, but negative disposable income debtor can propose payment schedule of creditors in less than 5 year period. Kagenveama
• Means testing uses National and Local standards, some actual like dependent care, life insurance