Official Form 122C 2 PDF Details

Understanding the essential elements of the Official Form 122C-2, known as the Chapter 13 Calculation of Your Disposable Income, is crucial for individuals navigating through bankruptcy. This form plays a pivotal role in determining the disposable income that individuals will use to repay creditors under a Chapter 13 bankruptcy plan. It requires detailed information ranging from personal identification to intricate financial specifics, relying heavily on both the National and Local Standards issued by the Internal Revenue Service to guide allowable expense deductions. From the outset, individuals are prompted to provide basic identification and case information, setting the stage for a comprehensive financial review. Essential to this process is the careful calculation of income deductions, including expenses such as food, clothing, healthcare, housing, and transportation, contrasted against the individual’s actual expenses. Additional deductibles encompass taxes, insurance, childcare, educational necessities for dependent children, and contributions to the care of household or family members. The form also addresses expenses related to the maintenance of secured debts, such as mortgages and vehicle loans, underscoring the importance of accuracy and thoroughness. By meticulously completing this form, individuals filing for Chapter 13 bankruptcy offer a transparent snapshot of their financial situation, which is indispensable for formulating a viable repayment plan.

QuestionAnswer
Form NameOfficial Form 122C 2
Form Length8 pages
Fillable?No
Fillable fields0
Avg. time to fill out2 min
Other names122c irs form, expense 122c irs, bankruptcy form 122c 1, income 122c form

Form Preview Example

Fill in this information to identify your case:

Debtor 1

__________________________________________________________________

 

First Name

Middle Name

Last Name

Debtor 2

________________________________________________________________

(Spouse, if filing)

First Name

Middle Name

Last Name

 

United States Bankruptcy Court for the:

__________ District of _________

 

 

 

 

 

 

Case number

___________________________________________

 

 

(If known)

 

 

 

 

Check if this is an amended filing

Official Form 122C-2

 

Chapter 13 Calculation of Your Disposable Income

12/15

To fill out this form, you will need your completed copy of Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period (Official Form 122C–1).

Be as complete and accurate as possible. If two married people are filing together, both are equally responsible for being accurate. If more space is needed, attach a separate sheet to this form. Include the line number to which the additional information applies. On the top of any additional pages, write your name and case number (if known).

Part 1: Calculate Your Deductions from Your Income

The Internal Revenue Service (IRS) issues National and Local Standards for certain expense amounts. Use these amounts to answer the questions in lines 6-15. To find the IRS standards, go online using the link specified in the separate instructions for this form. This information may also be available at the bankruptcy clerk’s office.

Deduct the expense amounts set out in lines 6-15 regardless of your actual expense. In later parts of the form, you will use some of your actual expenses if they are higher than the standards. Do not include any operating expenses that you subtracted from income in lines 5 and 6 of Form 122C–1, and do not deduct any amounts that you subtracted from your spouse’s income in line 13 of Form 122C–1.

If your expenses differ from month to month, enter the average expense.

Note: Line numbers 1-4 are not used in this form. These numbers apply to information required by a similar form used in chapter 7 cases.

5.The number of people used in determining your deductions from income

Fill in the number of people who could be claimed as exemptions on your federal income tax return, plus the number of any additional dependents whom you support. This number may be different from the number of people in your household.

 

National

 

You must use the IRS National Standards to answer the questions in lines 6-7.

 

 

Standards

 

 

 

 

 

 

 

 

 

 

 

6.Food, clothing, and other items: Using the number of people you entered in line 5 and the IRS National

Standards, fill in the dollar amount for food, clothing, and other items.

$________

7.Out-of-pocket health care allowance: Using the number of people you entered in line 5 and the IRS National

Standards, fill in the dollar amount for out-of-pocket health care. The number of people is split into two categories─people who are under 65 and people who are 65 or older─because older people have a higher IRS allowance for health care costs. If your actual expenses are higher than this IRS amount, you may deduct the additional amount on line 22.

Official Form 122C-2

Chapter 13 Calculation of Your Disposable Income

page 1

Debtor 1

_______________________________________________________

Case number (if known)_____________________________________

 

First Name

Middle Name

Last Name

 

People who are under 65 years of age

7a.

Out-of-pocket health care allowance per person $______________

7b.

Number of people who are under 65

X ______

 

 

 

7c.

Subtotal. Multiply line 7a by line 7b.

$______________

 

 

 

 

People who are 65 years of age or older

 

 

 

 

7d.

Out-of-pocket health care allowance per person $______________

7e.

Number of people who are 65 or older

X ______

 

 

 

7f.

Subtotal. Multiply line 7d by line 7e.

$______________

 

 

 

Copy

$___________

here

Copy+ $__________

here

 

 

7g. Total. Add lines 7c and 7f

$___________

 

 

Local

You must use the IRS Local Standards to answer the questions in lines 8-15.

Standards

 

Copy here

$________

Based on information from the IRS, the U.S. Trustee Program has divided the IRS Local Standard for housing for bankruptcy purposes into two parts:

Housing and utilities – Insurance and operating expenses Housing and utilities – Mortgage or rent expenses

To answer the questions in lines 8-9, use the U.S. Trustee Program chart. To find the chart, go online using the link specified in the separate instructions for this form. This chart may also be available at the bankruptcy clerk’s office.

8. Housing and utilities – Insurance and operating expenses: Using the number of people you entered in line 5, fill

$________

in the dollar amount listed for your county for insurance and operating expenses.

 

9.Housing and utilities – Mortgage or rent expenses:

9a.

Using the number of people you entered in line 5, fill in the dollar amount

$____________

 

listed for your county for mortgage or rent expenses.

 

 

9b.

Total average monthly payment for all mortgages and other debts secured by

 

 

your home.

 

To calculate the total average monthly payment, add all amounts that are contractually due to each secured creditor in the 60 months after you file for bankruptcy. Next divide by 60.

Name of the creditor

Average monthly payment

_________________________________

_________________________________

_________________________________

9b. Total average monthly payment

9c. Net mortgage or rent expense.

$__________

$__________

+$__________

$__________

Copy here

─Repeat this amount

$____________ on line 33a.

Subtract line 9b (total average monthly payment) from line 9a (mortgage or rent expense). If this number is less than $0, enter $0.

$____________ Copy here.......

$________

10.If you claim that the U.S. Trustee Program’s division of the IRS Local Standard for housing is incorrect and affects the calculation of your monthly expenses, fill in any additional amount you claim.

Explain

_______________________________________________________________

why:

_______________________________________________________________

 

$________

Official Form 122C-2

Chapter 13 Calculation of Your Disposable Income

page 2

Debtor 1

_______________________________________________________

Case number (if known)_____________________________________

 

First Name

Middle Name

Last Name

 

 

 

 

 

 

11.Local transportation expenses: Check the number of vehicles for which you claim an ownership or operating expense.

0. Go to line 14.

1. Go to line 12.

2 or more. Go to line 12.

12.Vehicle operation expense: Using the IRS Local Standards and the number of vehicles for which you claim the operating

expenses, fill in the Operating Costs that apply for your Census region or metropolitan statistical area.

$_______

 

13.Vehicle ownership or lease expense: Using the IRS Local Standards, calculate the net ownership or lease expense for each vehicle below. You may not claim the expense if you do not make any loan or lease payments on the vehicle. In addition, you may not claim the expense for more than two vehicles.

Vehicle 1

Describe Vehicle 1: _________________________________________________________________

 

 

_________________________________________________________________

 

 

 

 

13a.

Ownership or leasing costs using IRS Local Standard

$____________

13b.

Average monthly payment for all debts secured by Vehicle 1.

 

 

Do not include costs for leased vehicles.

 

To calculate the average monthly payment here and on line 13e, add all amounts that are contractually due to each secured creditor in the 60 months after you file for bankruptcy. Then divide by 60.

Name of each creditor for Vehicle 1

Average monthly payment

_________________________________

_________________________________

Total average monthly payment

$__________

+$__________

$__________

Copy

─ $___________

Repeat this amount

here

on line 33b.

13c. Net Vehicle 1 ownership or lease expense

Subtract line 13b from line 13a. If this number is less than $0, enter $0. ............

$___________

Copy net Vehicle

 

1 expense here

$_______

Vehicle 2

Describe Vehicle 2: _________________________________________________________________

 

 

_________________________________________________________________

 

 

 

 

13d.

Ownership or leasing costs using IRS Local Standard

$___________

13e.

Average monthly payment for all debts secured by Vehicle 2.

 

 

Do not include costs for leased vehicles.

 

Name of each creditor for Vehicle 2

Average monthly payment

_________________________________

_________________________________

Total average monthly payment

$__________

+$__________

$__________

Copy

─ $___________

Repeat this amount

here

on line 33c.

13f. Net Vehicle 2 ownership or lease expense

Subtract line 13e from 13d. If this number is less than $0, enter $0....................

$__________

Copy net Vehicle

 

2 expense here

$_______

 

14.Public transportation expense: If you claimed 0 vehicles in line 11, using the IRS Local Standards, fill in the Public Transportation expense allowance regardless of whether you use public transportation.

15.Additional public transportation expense: If you claimed 1 or more vehicles in line 11 and if you claim that you may also deduct a public transportation expense, you may fill in what you believe is the appropriate expense, but you may not claim more than the IRS Local Standard for Public Transportation.

$_______

$_______

Official Form 122C-2

Chapter 13 Calculation of Your Disposable Income

page 3

Debtor 1

_______________________________________________________

Case number (if known)_____________________________________

 

 

First Name

Middle Name

Last Name

 

 

 

 

 

 

 

Other Necessary

In addition to the expense deductions listed above, you are allowed your monthly expenses for the

Expenses

following IRS categories.

16.Taxes: The total monthly amount that you actually pay for federal, state and local taxes, such as income taxes, self-employment taxes, social security taxes, and Medicare taxes. You may include the monthly amount withheld from your pay for these taxes. However, if you expect to receive a tax refund, you must divide the expected refund by 12 and subtract that number from the total monthly amount that is withheld to pay for taxes.

Do not include real estate, sales, or use taxes.

17.Involuntary deductions: The total monthly payroll deductions that your job requires, such as retirement contributions, union dues, and uniform costs.

Do not include amounts that are not required by your job, such as voluntary 401(k) contributions or payroll savings.

18.Life insurance: The total monthly premiums that you pay for your own term life insurance. If two married people are filing together, include payments that you make for your spouse’s term life insurance.

Do not include premiums for life insurance on your dependents, for a non-filing spouse’s life insurance, or for any form of life insurance other than term.

19.Court-ordered payments: The total monthly amount that you pay as required by the order of a court or administrative agency, such as spousal or child support payments.

Do not include payments on past due obligations for spousal or child support. You will list these obligations in line 35.

20.Education: The total monthly amount that you pay for education that is either required:

as a condition for your job, or

for your physically or mentally challenged dependent child if no public education is available for similar services.

21.Childcare: The total monthly amount that you pay for childcare, such as babysitting, daycare, nursery, and preschool. Do not include payments for any elementary or secondary school education.

22.Additional health care expenses, excluding insurance costs: The monthly amount that you pay for health care that is required for the health and welfare of you or your dependents and that is not reimbursed by insurance or paid by a health savings account. Include only the amount that is more than the total entered in line 7.

Payments for health insurance or health savings accounts should be listed only in line 25.

23.Optional telephones and telephone services: The total monthly amount that you pay for telecommunication services for you and your dependents, such as pagers, call waiting, caller identification, special long distance, or business cell phone service, to the extent necessary for your health and welfare or that of your dependents or for the production of income, if it is not reimbursed by your employer.

Do not include payments for basic home telephone, internet or cell phone service. Do not include self-employment expenses, such as those reported on line 5 of Form 122C-1, or any amount you previously deducted.

24.Add all of the expenses allowed under the IRS expense allowances. Add lines 6 through 23.

Additional Expense

These are additional deductions allowed by the Means Test.

Deductions

Note: Do not include any expense allowances listed in lines 6-24.

 

$_______

$_______

$_______

$_______

$_______

$_______

$_______

+$________

$________

25.Health insurance, disability insurance, and health savings account expenses. The monthly expenses for health insurance, disability insurance, and health savings accounts that are reasonably necessary for yourself, your spouse, or your dependents.

Health insurance

Disability insurance

Health savings account

Total

Do you actually spend this total amount?

No. How much do you actually spend? Yes

$__________

$__________

+$__________

$__________

$__________

Copy total here......................................................................

$________

26.Continuing contributions to the care of household or family members. The actual monthly expenses that you will continue to pay for the reasonable and necessary care and support of an elderly, chronically ill, or disabled member of your household or member of your immediate family who is unable to pay for such expenses. These expenses may include contributions to an account of a qualified ABLE program. 26 U.S.C. § 529A(b).

27.Protection against family violence. The reasonably necessary monthly expenses that you incur to maintain the safety of you and your family under the Family Violence Prevention and Services Act or other federal laws that apply.

By law, the court must keep the nature of these expenses confidential.

$_______

$_______

Official Form 122C-2

Chapter 13 Calculation of Your Disposable Income

page 4

Debtor 1

_______________________________________________________

Case number (if known)_____________________________________

 

First Name

Middle Name

Last Name

 

28.Additional home energy costs. Your home energy costs are included in your insurance and operating expenses on line 8.

If you believe that you have home energy costs that are more than the home energy costs included in expenses on line 8,

 

then fill in the excess amount of home energy costs.

$_______

You must give your case trustee documentation of your actual expenses, and you must show that the additional amount

 

claimed is reasonable and necessary.

 

29.Education expenses for dependent children who are younger than 18. The monthly expenses (not more than $156.25* per child) that you pay for your dependent children who are younger than 18 years old to attend a private or public elementary or secondary school.

You must give your case trustee documentation of your actual expenses, and you must explain why the amount claimed is reasonable and necessary and not already accounted for in lines 6-23.

*Subject to adjustment on 4/01/16, and every 3 years after that for cases begun on or after the date of adjustment.

30.Additional food and clothing expense. The monthly amount by which your actual food and clothing expenses are higher than the combined food and clothing allowances in the IRS National Standards. That amount cannot be more than 5% of the food and clothing allowances in the IRS National Standards.

To find a chart showing the maximum additional allowance, go online using the link specified in the separate instructions for this form. This chart may also be available at the bankruptcy clerk’s office.

You must show that the additional amount claimed is reasonable and necessary.

31.Continuing charitable contributions. The amount that you will continue to contribute in the form of cash or financial instruments to a religious or charitable organization. 11 U.S.C. § 548(d)(3) and (4).

Do not include any amount more than 15% of your gross monthly income.

32.Add all of the additional expense deductions. Add lines 25 through 31.

Deductions for Debt Payment

$_______

$_______

+$________

$_________

33.For debts that are secured by an interest in property that you own, including home mortgages, vehicle loans, and other secured debt, fill in lines 33a through 33e.

To calculate the total average monthly payment, add all amounts that are contractually due to each secured creditor in the 60 months after you file for bankruptcy. Then divide by 60.

 

 

Average monthly

 

 

payment

Mortgages on your home

33a. Copy line 9b here

$___________

Loans on your first two vehicles

33b. Copy line 13b here

$___________

33c. Copy line 13e here

$___________

33d. List other secured debts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of each creditor for other

 

Identify property that

 

Does

 

 

secured debt

 

secures the debt

 

payment

 

 

 

 

 

 

include taxes

 

 

 

 

 

 

or insurance?

 

 

 

 

 

 

No

$___________

 

 

 

 

 

___________________________________

________________________

 

Yes

 

 

 

 

 

 

 

No

$___________

___________________________________

________________________

 

Yes

 

 

 

 

 

No

+ $___________

___________________________________

________________________

 

Yes

 

 

33e. Total average monthly payment. Add lines 33a through 33d

$___________

 

 

 

 

 

 

 

Copy total

$_______

here

 

Official Form 122C-2

Chapter 13 Calculation of Your Disposable Income

page 5

Debtor 1

_______________________________________________________

Case number (if known)_____________________________________

 

First Name

Middle Name

Last Name

 

34.Are any debts that you listed in line 33 secured by your primary residence, a vehicle, or other property necessary for your support or the support of your dependents?

No. Go to line 35.

Yes. State any amount that you must pay to a creditor, in addition to the payments listed in line 33, to keep possession of your property (called the cure amount). Next, divide by 60 and fill in the information below.

Name of the creditor

Identify property that

Total cure

 

Monthly cure amount

 

secures the debt

amount

 

 

 

 

 

 

 

_________________________

__________________

$__________

÷ 60 =

$___________

_________________________

__________________

$__________

÷ 60 =

$___________

_________________________

__________________

$__________

÷ 60 = + $___________

 

 

 

 

 

 

 

 

Total

$___________

 

 

 

 

 

Copy

total $_______

here

35.Do you owe any priority claimssuch as a priority tax, child support, or alimony that are past due as of the filing date of your bankruptcy case? 11 U.S.C. § 507.

No. Go to line 36.

Yes. Fill in the total amount of all of these priority claims. Do not include current or

ongoing priority claims, such as those you listed in line 19.

Total amount of all past-due priority claims

 

$______________

÷ 60

36. Projected monthly Chapter 13 plan payment

 

$______________

 

 

 

 

Current multiplier for your district as stated on the list issued by the Administrative

 

 

 

Office of the United States Courts (for districts in Alabama and North Carolina) or by

 

 

 

the Executive Office for United States Trustees (for all other districts).

x

______

 

To find a list of district multipliers that includes your district, go online using the link

 

 

 

 

specified in the separate instructions for this form. This list may also be available at the

 

 

 

bankruptcy clerk’s office.

 

 

 

 

 

 

Copy

 

 

 

Average monthly administrative expense

 

$______________

total

 

 

 

here

37. Add all of the deductions for debt payment. Add lines 33e through 36.

 

 

 

Total Deductions from Income

38.Add all of the allowed deductions.

$_______

$_______

$_______

Copy line 24, All of the expenses allowed under IRS expense allowances

$______________

Copy line 32, All of the additional expense deductions

$______________

Copy line 37, All of the deductions for debt payment

+ $______________

 

 

Total deductions

$______________

 

 

Copy total

here

$_______

Official Form 122C-2

Chapter 13 Calculation of Your Disposable Income

page 6

Debtor 1

_______________________________________________________

Case number (if known)_____________________________________

 

First Name

Middle Name

Last Name

 

 

 

Part 2:

Determine Your Disposable Income Under 11 U.S.C. § 1325(b)(2)

 

 

 

 

 

39. Copy your total current monthly income from line 14 of Form 122C-1, Chapter 13

$_______

Statement of Your Current Monthly Income and Calculation of Commitment Period.

 

40.Fill in any reasonably necessary income you receive for support for dependent children. The monthly average of any child support payments, foster care payments, or disability payments for a dependent child, reported in Part I of Form 122C-1, that you received in accordance with applicable nonbankruptcy law to the extent reasonably necessary to be expended for such child.

41.Fill in all qualified retirement deductions. The monthly total of all amounts that your employer withheld from wages as contributions for qualified retirement plans, as specified in 11 U.S.C. § 541(b)(7) plus all required repayments of loans from retirement plans, as specified in 11 U.S.C. § 362(b)(19).

42.Total of all deductions allowed under 11 U.S.C. § 707(b)(2)(A). Copy line 38 here ............

$____________

$____________

$____________

43.Deduction for special circumstances. If special circumstances justify additional expenses and you have no reasonable alternative, describe the special circumstances and their expenses. You must give your case trustee a detailed explanation of the special circumstances and documentation for the expenses.

Describe the special circumstances

Amount of expense

______________________________________________________ $___________

______________________________________________________ $___________

______________________________________________________ + $___________

Total $___________

Copy here

+$_____________

.....................................................................................44. Total adjustments. Add lines 40 through 43

 

 

$____________

Copy here – $______

45.Calculate your monthly disposable income under § 1325(b)(2). Subtract line 44 from line 39.

$_______

Part 3: Change in Income or Expenses

46.Change in income or expenses. If the income in Form 122C-1 or the expenses you reported in this form have changed or are virtually certain to change after the date you filed your bankruptcy petition and during the time your case will be open, fill in the information below. For example, if the wages reported increased after you filed your petition, check

122C-1 in the first column, enter line 2 in the second column, explain why the wages increased, fill in when the increase occurred, and fill in the amount of the increase.

 

Form

 

Line

 

 

 

 

 

122C─1

____

 

122C─2

 

 

 

 

122C─1

____

 

122C─2

 

 

 

 

122C─1

____

 

122C─2

 

 

 

 

122C─1

____

 

122C─2

 

 

 

Reason for change

 

Date of change

 

 

 

_______________________________

____________

_______________________________

____________

_______________________________

____________

_______________________________

____________

Increase or decrease?

Increase

Decrease

Increase

Decrease

Increase

Decrease

Increase

Decrease

Amount of change

$____________

$____________

$____________

$____________

Official Form 122C-2

Chapter 13 Calculation of Your Disposable Income

page 7

Debtor 1

_______________________________________________________

Case number (if known)_____________________________________

 

First Name

Middle Name

Last Name

 

 

 

 

 

Part 4:

Sign Below

 

 

 

 

 

 

 

By signing here, under penalty of perjury you declare that the information on this statement and in any attachments is true and correct.

___________________________________________________

__________________________________

Signature of Debtor 1

Signature of Debtor 2

Date _________________

Date _________________

MM / DD / YYYY

MM / DD / YYYY

 

 

Official Form 122C-2

Chapter 13 Calculation of Your Disposable Income

page 8

How to Edit Official Form 122C 2 Online for Free

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1. First, while filling out the form 122c official form, start out with the page containing following blank fields:

bankruptcy form 122c 1 conclusion process explained (portion 1)

2. After this array of fields is filled out, proceed to enter the suitable information in all these - The number of people used in, Fill in the number of people who, National Standards, You must use the IRS National, Food clothing and other items, Standards fill in the dollar, Outofpocket health care allowance, Standards fill in the dollar, Official Form C, Chapter Calculation of Your, and page.

Filling out part 2 in bankruptcy form 122c 1

3. This next part is going to be straightforward - fill in every one of the form fields in Debtor, First Name, Middle Name, Last Name, Case number if known, People who are under years of age, a Outofpocket health care, b Number of people who are under, c Subtotal Multiply line a by line, Copy here, People who are years of age or, d Outofpocket health care, e Number of people who are or, f Subtotal Multiply line d by line, and Copy to conclude this segment.

Writing section 3 of bankruptcy form 122c 1

4. To move onward, your next step will require typing in a couple of blank fields. Included in these are To answer the questions in lines, Housing and utilities Insurance, in the dollar amount listed for, Housing and utilities Mortgage, a Using the number of people you, listed for your county for, b Total average monthly payment, your home, To calculate the total average, Name of the creditor, Average monthly payment, b Total average monthly payment, Copy, here, and Repeat this amount on line a, which you'll find fundamental to moving forward with this particular PDF.

Tips to fill out bankruptcy form 122c 1 part 4

5. Last of all, this last portion is precisely what you will need to complete prior to using the PDF. The fields in this instance are the following: Explain why, Official Form C, Chapter Calculation of Your, and page.

Stage # 5 for filling in bankruptcy form 122c 1

It is possible to make a mistake when completing the Chapter Calculation of Your, and so make sure you take a second look prior to deciding to finalize the form.

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