What is the average % that debtors will accept for bankruptcy?

What is the standard or average % that debtors will accept for chapter 13 bankruptcy? Does it matter how much is owed to them or how much the individual owes over-all?

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  1. The percentage or amount paid back is determined by your “disposable income”. Some cases are 100% payback and others are 10%. All depends on your disposable income. Disposable income is calculated by your gross income minus all taxes, medical, dental and other insurance found on your pay check. Then all your reasonable and ordinary living expenses are subtracted leaving you with your “disposable income”. This amount must be turned over to the trustee to pay your creditors. So there is no set amount and the actual percentage depends on your disposable income and the amount of secured and unsecured debts. And you have to turnover your tax refunds to the trustee during the course of your chapter 13 plan. Your tax refunds are considered part of your “disposable income”.

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