Best Case® Bankruptcy: Chapter 13 Plan Tour

One of the features that sets Best Case Bankruptcy apart from the competition is the flexibility and accuracy of our Best Case Chapter 13 Plan Calculator.

Using information that you have already entered in the creditor schedules, the Best Case Chapter 13 Plan Calculator helps you work out a feasible repayment plan quickly and easily. The Chapter 13 Plan Calculator performs a great deal of work, splitting each month's payment between the creditors according to your specifications while taking into account important factors that change with each case.

Since the nature and complexity of Chapter 13 cases vary by client, and since Chapter 13 practices and procedures vary from district to district, we have designed the calculator to give you a great deal of flexibility in determining how, when and how much each creditor will be paid.

Quick Overview of the Best Case Chapter 13 Plan Calculator

Treatment Classifications

The Chapter 13 Plan Calculator uses plan treatment classifications that you select for creditors in Schedules D, E & F. Plan classes determine:

• If the creditor will receive a set monthly amount or if the calculator should determine the monthly payment.
• Whether payments to a creditor will be made inside the plan or directly to the creditor.
• Whether the creditor will be paid in full or receive only a portion of the amount due.
• When a creditor will be paid in relation to other creditors.

Best Case Bankruptcy includes many different classifications, including some classifications which are specific to particular jurisdictions and the ability to define your own!

Other 13 plan treatment information

The Chapter 13 Plan Calculator offers customization beyond treatment classifications. Some information which can be set for each claim includes:

• Specifying different interest rates for each claim, as well as with the arrearage portion of a claim.
• Make payments towards arrears while the rest of the claim is paid outside the plan.
• Cram downs: For claims where the claim amount is greater than the value of the property, users can easily cram down the claim by splitting the claim into a secured and unsecured portion. The secured portion will be paid in full, while the unsecured portion is treated as a Schedule F claim.
• Similarly, when the full amount of a priority claim is not entitled to be classified as priority, the claim can be split into a priority and non-priority portion.
• When a property is fully exempt, by choosing the Secured, Avoid Lien classification the calculator will treat the claim as unsecured.
• Differentiate between creditors paid off entirely through the plan and those whose claim will extend beyond the term of the plan.
• Specify a set amount to pay a creditor each month.
• Much more!

Using the Chapter 13 Plan Calculator

After setting the treatment classifications for you plan, you are ready to use the Chapter 13 Plan Calculator to determine your repayment plan.

To calculate your plan, open the Summary tab and type a question mark(?) into the payment field and declare the term of the plan in the adjoining field. At this point, you can set the percentage to payout unsecured claims as well as entering the attorney’s and filing fees to be paid through the plan. Press Calculate and watch as Best Case processes your case information and provides a feasible plan payment.

Alternatively, you could:

• Enter the monthly payment amount your debtor can afford and type the question mark into the number of months field. This will determine how long it will take to complete the plan given the current payment amount.
• Enter in both the monthly payment amount and the term of the plan and Best Case will determine the percentage to pay unsecured creditors. The Chapter 13 Plan Calculator will also return errors if the payment amount is insufficient to satisfy the plan.
• Create a step plan: Use the other payment and number of months fields when the debtor needs to pay different amounts into the plan during set time periods.
• Lumpsum payments: The calculator can factor in up to three lumpsum payments when the debtor is expecting proceeds from the sale of property or a tax refund.

The Chapter 13 plan calculator includes several sections designed to help you understand and modify your plan when necessary.

Sections of the Chapter 13 Plan Calculator include:

• Summary tab: Allows users to calculate plans, set the percentage to unsecured creditors and view a basic summary of plan information.
• Claims tab: Organizes plan information by claim, showing the interest accrued, total payout and the first and last months of payment. You can also specify the amount of attorneys and filing fees to be paid through the plan.
• Payout tab: Lists every payment made to a creditor throughout the life of the plan. Includes a useful printable summary.
• Liquidation Analysis: Provides an estimation of how your client would fare under a Chapter 7 filing.
• Split Claims: Lists any secured claims with unsecured portions, secured claims where the lien is being avoided and priority claims with non-priority portions.
• Wage: Allows users to determine the wage deduction amount to satisfy plan payments when applicable.
• Limit: Compares totals from your client plan to the known Chapter 13 debt limits.
• Other provisions: Includes a section to declare any other provisions to be included with the plan.

Customization

Due to the complexity of a plan, you may need to customize it in any number of ways for a particular client. With the Best Case Chapter 13 Plan Calculator, you can rest assured that there are several ways to customize the plan.

• Under the setup menu, the Chapter 13 Plan Calculator can be customized for all of your cases. Adjustments can be made on the trustee’s fee, whether it is calculated on contributions or distributions; users can create and modify plan classifications and set default classifications for claims.
• Form preferences allow users to customize how an individual client’s chapter 13 plan is calculated and printed. Form preferences cover a wide variety of options and vary significantly between jurisdictions.
• When a plan needs to be customized beyond what the setup menu and standard controls allow, Best Case users can simply edit the Chapter 13 plan to make it appear exactly as desired. When editing a form, Best Case Bankruptcy’s built in word processor, the Best Case Editor, is used.

Once your plan is created to your satisfaction, it can be easily prepared for filing along with the rest of case using the ECF wizard.

Online Seminars

Best Case is proud to offer complimentary training to all of our customers including an online seminar devoted to the Chapter 13 Plan Calculator. View and register for upcoming sessions.

Custom Chapter 13 Plans

Best Case Bankruptcy includes a standard Chapter 13 Plan that is accepted in many districts in the country. Some districts however, require the Chapter 13 Plan to be printed in a very specific format. Best Case offers a number of district-specific custom Chapter 13 Plans at an additional cost. To see a list of the custom Chapter 13 Plans offered, click on Local Forms Sold as Add-Ons.

More information:

To learn more about the Chapter 13 Plan Calculator, download the demo version of Best Case Bankruptcy. Our User's Guide contains an entire chapter discussing the various options that you have in the calculator, and on-line help topics guide you through each screen.