How do they determine how much of your unsecured debt you have to pay back

[elizabeth1969]

How do they determine how much of the unsecured debt you have to pay back? Is is based on your income? If you are below the median income do you still pay back unsecured debts?

[lrprn]

Elizabeth, there's a good explanation of how Ch 13 works here:

http://www.abanet.org/publiced/practical/bankruptcy13_whatis.html

And this website explains about how Ch 13 payments are calculated:

http://www.personal-bankruptcy-chapters-7-13-filing-laws.com/ch13/chapter-13-bankruptcy-explained.htm

Hope this helps!

[SinkingFast]

Since you're below the Median, are you considering Ch 13 to protect an asset??

How much you pay in total monthly payments is pretty much determined by how much disposable income your attny shows you as having.

If you're behind on house and/or car payments and looking at Ch 13 to keep property, you may wind up paying ZERO to unsecureds. I've seen one Ch 13 plan on PACER where that was the case. The people were in arrears on their house and car, and had delinquent taxes. The attny rolled their secured payments for the house and car loans, the delinquent taxes, and the arrears on both notes into Ch 13. There was no money being paid to unsecureds. Those people were also below the Median.

With you being below the Median,......... There's another tricky issue that comes into play. Depending on how far you are below the Median, that is.

The Trustee has to feel that you will be able to meet your payment obligations under a Ch 13 payment plan or the Trustee cannot in good faith endorse/confirm your proposed plan. So that is something to keep in mind as you Consult with attnys about your particular situation.