How the liquidation value test works
A Chapter 13 plan has to pay unsecured creditors at least as much as they would have received if the case had been a Chapter 7 liquidation. That floor is the liquidation value. Enter your real property and its liens, cash, vehicles and other personal property, the exemptions you can claim, and an estimate of trustee fees to see the non-exempt equity and the minimum monthly payment that floor implies.
Real property counts only to the extent of equity, so a house worth less than the mortgage against it contributes nothing. Exemptions are subtracted only up to the equity that exists, and the remainder is reduced by the administrative costs a Chapter 7 trustee would incur before distributing anything.
Statutory basis (as of September 2026) — the best interests of creditors test is 11 U.S.C. 1325(a)(4). Exemptions are governed by 11 U.S.C. 522, with the federal schedule in 522(d) adjusted for inflation every three years under 11 U.S.C. 104, and many states require you to use state exemptions instead. Trustee compensation follows the sliding scale in 11 U.S.C. 326(a), and 11 U.S.C. 1322(d) caps the plan at five years.
This calculator is for reference only and is not legal advice. Asset valuations and exemption claims are reviewed by the trustee and the court, so consult a licensed bankruptcy attorney about your specific situation.
Frequently Asked Questions
Not necessarily. It means the plan must distribute at least that amount to unsecured creditors. A debtor can meet the floor with larger monthly payments, a lump sum, or by spreading payments over a longer applicable commitment period.
Use the ones available in the state where you file. Some states let you choose between the federal schedule in 11 U.S.C. 522(d) and the state list, while others have opted out of the federal schedule, so the amounts vary widely.