Chapter 13 Payments in St. Louis

Your Chapter 13 payment depends on income, expenses, debts, and assets. Here is how payments work in the Eastern District of Missouri.

How Payments Are Calculated

Your Chapter 13 payment must satisfy three tests:

Disposable income test: All projected disposable income (income minus allowable expenses) goes to the plan
Best interest of creditors: Unsecured creditors must receive at least as much as they would get in Chapter 7 liquidation
Feasibility: Court must find you can actually make the payments

What Gets Paid Through the Plan

Must Be Paid in Full

Mortgage arrears (if keeping home)
Car loan arrears (if keeping car)
Priority tax debts
Domestic support obligations (arrears)
Administrative expenses (trustee/attorney fees)

Paid at a Percentage

General unsecured debt (credit cards, medical bills) -- 0% to 100%
Stripped second mortgages
Deficiency claims on surrendered property
Remaining balance discharged at completion

Plan Length

Below Missouri median ($56,847 for 1 person): 3 to 5 years
Above median: Must be 5 years (60 months)
Trustee fee is typically 5-10% of payments in the Eastern District of Missouri

If You Cannot Make Payments

Plan modification: Ask the court to reduce payments
Payment suspension: Some courts allow temporary hardship pauses
Convert to Chapter 7: If you qualify
Hardship discharge: Available if you have paid a substantial portion (section 1328(b))
Voluntary dismissal: You lose protections but regain flexibility

Making Payments

First payment due within 30 days of filing -- before plan confirmation
Most trustees require wage orders or electronic payments
Regular mortgage payments continue directly to lender
Trustee may require you to turn over tax refunds
Income increases must be reported to the trustee

Frequently Asked Questions

How much will my payment be?

Depends on income, expenses, debts, and assets. Must cover priority debts in full plus your disposable income. Ranges from hundreds to thousands monthly.

How long is a Chapter 13 plan?

3 to 5 years. Above the Missouri median ($56,847) requires 5 years. Below-median filers can choose 3 years.

When does the first payment start?

Within 30 days of filing -- before plan confirmation. Missing early payments jeopardizes your case.

Can payments be reduced?

Yes. File a motion to modify the plan if circumstances change (income decrease, new expenses).

What percentage of debt will I pay?

Priority debts: 100%. Unsecured debts: whatever your disposable income allows (sometimes 0-10%, sometimes much more).