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

Calculating your disposable income when filing for Chapter 13 bankruptcy in California can be complicated. The first step is to determine your average monthly income for the six-month period prior to the filing. This includes any income you may have received from employment, investments, or other sources. You should also include any tax refunds received during this period. Next, you will need to subtract your reasonable monthly expenses from your average monthly income. Reasonable monthly expenses include necessary items such as rent or mortgage payments, food, utilities, clothing, medical costs, insurance premiums, and transportation costs. You can also deduct any amounts that were paid as alimony or child support during the six-month period. The final step is to subtract the amount of priority debts from your disposable income. Priority debts are debts that must be paid in full under Chapter 13, such as certain taxes and back child support. Once you have completed all of the steps above, you will have calculated your disposable income for Chapter 13 bankruptcy in California. Remember to save records of your income and expenses, as you will need them throughout the bankruptcy process.

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

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