Do I get to Keep any of my Disposable Income if I File for a Chapter 13 Bankruptcy?
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Do I get to Keep any of my Disposable Income if I File for a Chapter 13 Bankruptcy?

Question Detail: If I file for Utah Chapter 13 bankruptcy, do I get to keep any of my disposable income? I know you end up with a set payment plan for some of your debt, but I want to make sure I get to keep some disposable income. I still need to live.
Answer: In a Chapter 13 bankruptcy case, the debtor proposes a ‘plan’ that must be supported by and consistent with the debtor’s budget. Follow this link for the official budget form:http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK_Forms_1207/B_006J_1207f.pdfIn the budget, you should list all of your reasonable and necessary living expenses, such as mortgage, utilities, transportation, food, medical, clothing, etc. In order for your Chapter 13 plan to be feasible under the law, there must be enough money leftover at the end of the month to make your Chapter 13 bankruptcy payment. If more funds are left over, then you will probably be required to make a higher bankruptcy payment. You will note on the official budget form that there are line items for expenses you might not expect, such as recreation, clubs and entertainment, newspapers, magazines, charitable contributions, etc. Your bankruptcy attorney should know what additional expenses are generally allowed in your area. Have a question about filing bankruptcy in Utah? Craig Swapp & Associates Utah bankruptcy lawyers would be happy to answer it. Please submit your question online and we’ll respond as soon as possible.

 

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