Your Chapter 13 plan payment is not a number a court picks for you — it is the larger of two figures: the disposable income you can devote to creditors and the amount needed to satisfy certain mandatory claims. In plain terms, your monthly payment must cover what you are required to pay (secured arrears, priority debts, and a Chapter 7 minimum to unsecured creditors) and, if you earn above the Missouri median, all of your projected disposable income on top of that.
Because Chapter 13 is governed entirely by federal law — chiefly 11 U.S.C. § 1322 (what a plan must contain) and 11 U.S.C. § 1325 (what a court must find to confirm it) — the calculation is the same in Kansas City as in St. Louis. This guide breaks the math into its moving parts so a Missouri filer can see how plans range anywhere from 0% to 100% repayment of unsecured debt.
Step one: the applicable commitment period
The first variable is how long you pay, because the length sets the denominator for everything else. The applicable commitment period under 11 U.S.C. § 1325(b) turns on a single comparison: your household's current monthly income (roughly your average gross income over the six months before filing, annualized) against the median income for a Missouri household of your size.
- Below the Missouri median — your commitment period is generally three years (36 months). You may propose a longer plan, up to five years, if you need the extra time to cure arrears.
- At or above the Missouri median — your commitment period is generally five years (60 months), and a court will not confirm a plan shorter than that over a trustee's objection unless unsecured creditors are paid in full.
The Missouri median figure is state-specific data published and periodically updated by the U.S. Trustee Program by household size. Because it changes, you confirm the current number for your filing date rather than assuming a fixed dollar amount. A plan can never exceed five years.
Step two: disposable income
The engine of the plan payment is disposable income — your current monthly income minus allowed expenses. How "allowed expenses" are measured depends entirely on which side of the median you fall on.
Below-median filers: actual reasonable expenses
If your income is below the Missouri median, you generally use your actual, reasonable living expenses — your real budget for housing, food, utilities, transportation, insurance, and similar necessities, as reported on your bankruptcy schedules. Whatever remains after those reasonable expenses is the disposable income you must commit.
Above-median filers: the means-test IRS Standards
If your income is at or above the median, the law substitutes standardized expense allowances for parts of your real budget. These are the IRS National and Local Standards used in the means test — fixed allowances for food, clothing, housing, transportation, and so on, regardless of what you actually spend. This is why higher earners usually pay more: the standards can be tighter than a real budget, and the resulting projected disposable income is multiplied across a 60-month plan.
The product of this step — disposable income times the commitment period — is the floor for what unsecured creditors must receive if a creditor or the trustee objects to confirmation.
Step three: what the plan must pay, and in what order
A plan does not simply hand your disposable income to whoever asks. Under 11 U.S.C. § 1322, claims fall into three tiers that are treated very differently.
Secured claims
Secured creditors hold collateral, so they get protected treatment. A plan handles them in one of a few ways:
- Cure arrears and maintain payments. The classic use of Chapter 13: you spread past-due mortgage or car payments across the plan while resuming the regular monthly payment, keeping the house or car.
- Pay the full secured claim over the plan when you are keeping collateral but not simply curing a default.
- Cramdown — reduce certain secured debts to the value of the collateral, paying only what the property is worth, with the shortfall dropping into the unsecured pool.
The major limit is the 910-day rule (the "hanging paragraph" after 11 U.S.C. § 1325(a)): you generally cannot cram down a vehicle bought for personal use within 910 days (about two and a half years) before filing — that car loan must be paid as a full secured claim. A mortgage on your principal residence also generally cannot be crammed down, which is why curing arrears is the tool for a primary home.
Priority claims
Priority claims — most recent taxes and domestic-support obligations (child support and alimony arrears) — must generally be paid in full over the life of the plan. There is little flexibility here; a plan that fails to provide for priority debts cannot be confirmed. Spreading these over three to five years is often the entire reason a filer chooses Chapter 13, since these debts survive a Chapter 7.
General unsecured claims
Everything left over — credit cards, medical bills, personal loans, the crammed-down portion of a car loan, deficiency balances — is general unsecured debt. These creditors are paid last, from whatever disposable income remains after secured and priority claims are funded. This bottom tier is where the percentage paid varies most dramatically.
Step four: the best-interests test
Even after the disposable-income math, the law sets a minimum floor for unsecured creditors. Under the best-interests-of-creditors test in 11 U.S.C. § 1325(a)(4), your plan must pay unsecured creditors at least as much as they would have received in a Chapter 7 liquidation.
This is where Missouri property law re-enters the calculation. The more non-exempt value you own — equity above the caps in RSMo § 513.475 (homestead) and RSMo § 513.430 (personal property) — the higher the Chapter 7 baseline, and the more your plan must pay unsecured creditors regardless of your disposable income. A filer with little disposable income but significant non-exempt equity can still face a substantial plan payment because of this floor.
Step five: feasibility
Finally, the plan must be feasible — 11 U.S.C. § 1325(a)(6) requires the court to find you can actually make the payments. A plan that pencils out on paper but exceeds what your real income can sustain will not be confirmed. The trustee and the court test the proposed payment against your budget, and an over-ambitious plan is sent back for revision.
Putting it together: why plans run 0% to 100%
The final payment is whichever is larger: the disposable-income figure or the amount needed to clear secured arrears, priority debts, and the best-interests floor. From there, the percentage paid to unsecured creditors falls out of the math:
- A 0% plan can confirm when a below-median filer has no disposable income left after curing secured arrears and paying priority claims, and owns no non-exempt property — so the Chapter 7 floor is also zero.
- A 100% plan results when income is high enough, or non-exempt assets large enough, that unsecured creditors are paid in full.
- Most plans land somewhere in between, paying unsecured creditors a fraction determined by disposable income and the best-interests floor.
Frequently Asked Questions
How is my Chapter 13 payment amount calculated in Missouri?
It is the larger of (1) your disposable income over the commitment period and (2) the amount needed to cure secured arrears, pay priority claims in full, and satisfy the best-interests floor. Feasibility then confirms you can actually afford it.
Does my plan have to pay unsecured creditors in full?
No. Unsecured creditors are paid last, from leftover disposable income, subject only to the best-interests floor (the Chapter 7 liquidation value of your non-exempt property). Plans range from 0% to 100% depending on income and non-exempt assets.
How long will my Missouri Chapter 13 plan last?
Generally three years if your current monthly income is below the Missouri median for your household size, and five years if it is at or above the median. A plan can never exceed five years.
What is disposable income for plan purposes?
Your current monthly income minus allowed expenses. Below-median filers use their actual reasonable living expenses; above-median filers use the standardized IRS National and Local Standards from the means test, which often produces a higher required payment.
Can I lower my car payment in the plan?
Sometimes, through cramdown — reducing the secured claim to the car's value. But under the 910-day rule (the hanging paragraph after 11 U.S.C. § 1325(a)), a vehicle bought for personal use within roughly two and a half years before filing must be paid as a full secured claim.
Why does my non-exempt property affect my payment?
Because of the best-interests test in 11 U.S.C. § 1325(a)(4): unsecured creditors must receive at least what they would get if your non-exempt property were sold in Chapter 7. Equity above Missouri's exemption caps (RSMo § 513.475, RSMo § 513.430) raises that floor.
Legal Disclaimer
This guide provides general legal information about federal bankruptcy law and Missouri law and is not legal advice. It does not create an attorney-client relationship. How a Chapter 13 plan payment is calculated depends on current federal law, the published Missouri median income, your income and expenses, and your specific property; consult a qualified Missouri bankruptcy attorney before filing.