How do I calculate my disposable income for Chapter 13 Bankruptcy?

In order to calculate your disposable income for Chapter 13 Bankruptcy in Virginia, you must first understand the concept of disposable income. Disposable income is the money you have left over after paying for all necessary living expenses that can be used to repay creditors in a Chapter 13 Bankruptcy plan. The first step in calculating your disposable income is to calculate your Current Monthly Income (CMI) by adding your annual income from the most recent 6 months before filing bankruptcy and dividing it by 12. This will give you a baseline number to work with. The next step is to subtract allowable deductions from your CMI to determine your disposable income. These deductions may include but are not limited to the following: necessary living expenses such as your mortgage payment, rent, car payments, child support and alimony, necessary medical expenses, taxes and insurance payments. Once these necessary living expenses have been subtracted from your CMI, you will have your disposable income. It is important to note that Virginia allows for deviations from the national average when it comes to calculating disposable income. This means that if you live in an area where the cost of living is higher, you may be able to deduct additional necessary living expenses from your CMI. Remember, always consult with an experienced bankruptcy attorney to ensure that you are correctly calculating your disposable income so that your Chapter 13 Bankruptcy Plan is approved.

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How do I calculate my disposable income for Chapter 13 Bankruptcy?

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