There are many different areas of a bankruptcy proceeding that can be really difficult to decipher and they are complex. During the bankruptcy no matter which chapter is being applied for there are many forms that need to be filled out and a lot of calculations that have to be done.
In a Chapter 13 bankruptcy which is more of a repayment plan for your debts, there is a process that you have to go through which is a disposable income calculation. This is a Form that has to be filled out and what it entails is declaring your currently monthly income and your expenses. This helps the courts determine the length of the repayment plan as to whether it will be for three years or five years.
Before you can reach the figure for your disposable income there are some deductions that are allowed to be made. These will vary by the individual states. There will be items such as your transportation and rent or your utilities expenses and your basic living expenses. In some cases there may be special deductions that are allowed.
There is also under this particular chapter the opportunity to file for an additional deduction of administrative expenses. This is done with the use of a multiplier and it varies state to state. As you can see this can be quite a complex process and is just one of the type of forms that has to be filled out, and just one of the many reasons why you really need professional help such as a bankruptcy lawyer in Dayton. It is imperative that all forms are filled out error free not only in the Chapter 13 bankruptcy but in the Chapter 7 as well.