If you’re in a Chapter 13 bankruptcy, you may be feeling frustrated or even shocked by how high your monthly payment is.
A lot of people ask:
“Why is my Chapter 13 payment so high?”
“I thought bankruptcy was supposed to help!”
“How am I supposed to afford this for 3 to 5 years?”
You are not alone — and this is one of the most common complaints Chapter 13 filers have.
Here are the most common reasons your Chapter 13 payment may be higher than expected.
1. You Have to Catch Up on Mortgage or Car Payments
If you were behind on your mortgage or car loan when you filed, Chapter 13 often requires you to catch up through the repayment plan.
That means your monthly payment includes:
- your regular payment going forward, plus
- extra money each month to catch up the past-due amount
This alone can make a plan payment feel overwhelming.
2. You Owe Priority Debts (Like Taxes or Child Support)
Some debts must be paid in full in Chapter 13, including:
- certain IRS or state tax debts
- child support arrears
- spousal support arrears
These are called priority debts, and they often increase the plan payment significantly.
3. You Have Too Much Disposable Income
Chapter 13 is based on your “disposable income,” meaning what the court believes you have left after necessary living expenses.
If your income is considered high enough, the trustee may require a larger payment — even if it doesn’t feel like you have extra money.
4. You May Be in a 100% Repayment Plan
Some people are placed into a 100% plan, meaning they must repay unsecured creditors in full.
This can happen if:
- your income is high
- you have too much equity in property
- you have assets that would be at risk in Chapter 7
A 100% plan often results in a much higher monthly payment.
5. Attorney Fees and Trustee Fees Are Included
Many Chapter 13 plans include:
- trustee fees
- attorney fees
So part of your monthly payment is going toward administrative costs before creditors even get paid.
This is normal, but it can make the payment feel even higher.
6. You Have Equity in a Home or Other Property
Even if your income isn’t high, Chapter 13 law requires unsecured creditors to receive at least as much as they would have received in a Chapter 7 case.
So if you have non-exempt equity in:
- a house
- a second property
- vehicles
- savings
your payment may be higher to account for that.
Can My Chapter 13 Payment Be Lowered?
Sometimes, yes.
If your income drops or expenses increase, you may be able to request a plan modification.
But if your payment is high due to required debts like taxes, mortgage arrears, or equity, it may not be easy to reduce.
The Bottom Line
Your Chapter 13 payment is usually high because you are paying for one or more of the following:
✅ catching up mortgage or car payments
✅ paying priority debts like taxes or support
✅ paying based on disposable income rules
✅ repaying unsecured creditors (sometimes 100%)
✅ trustee and attorney fees
✅ protecting equity in your property
Final Thought
Chapter 13 can feel tough — but it’s often the only option that allows people to stop foreclosure, keep assets, and get control of debt.
If your payment feels impossible, talk to your attorney. In some cases, there may be options to modify the plan or adjust expenses.
