What Is a Chapter 13 Plan?

The chapter 13 plan is the most crucial document you will submit if you’re choosing to file for bankruptcy under chapter 13. In the plan, you get the opportunity to lay out how you want your financial situation to be reorganized under your bankruptcy. This reorganization basically dictates how you plan to pay back your debts, including which debts you wish to pay back first and gives you the option to designate what portions of your payment go to which creditors. Filing your chapter 13 plan adeptly can determine many outcomes of bankruptcy mostly due to the fact that you can choose the order in which you pay back your debts. The initial chapter 13 plan you submit is not completely permanent either, as you will be able to modify it before your confirmation hearing and in some circumstances after your confirmation hearing as well.

If you're considering filing for bankruptcy under chapter 13, it would be extremely advantageous for you to consult with a local bankruptcy attorney in order to prepare a chapter 13 plan that maximizes benefits for you.

How do I Know if I Qualify for a Chapter 7 Bankruptcy?

The main qualifying factor concerning chapter 7 bankruptcies is whether or not you and your family fall above or below the state median income. The way your income is calculated for filing for bankruptcy is by collecting all proof of income for the previous 6 months, then multiplying that accumulated income by 2 to extrapolate your income throughout an entire year. This process is known as the means test. If you end up below that median then chapter 7 bankruptcy is an eligible option for you to consider. For filing for bankruptcy in 2020 Michigan’s median income is as follows for each specific household size:


Household of 1: $53,113.00
Household of 2: $64,428.00
Household of 3: $78,217.00
Household of 4: $93,653.00
Household of 5+: Add $9,000 to each previous household size (e.g. $102,653.00 for household size of 5, $111,653.00 for household size of 6, etc.)


To better understand if filing for bankruptcy is the right action for you to take, it is recommended you set up a consultation with a local bankruptcy attorney.