Kentucky Chapter 13 Calculation of Your Disposable Income is a formula used to determine how much of your income is available to be used for repayment of debt under Chapter 13 bankruptcy. This calculation is used to determine the amount of money that can be used towards paying back creditors in a Chapter 13 repayment plan. The two main types of Kentucky Chapter 13 Calculation of Your Disposable Income are the Allowable Expenses Method and the Means Test Method. The Allowable Expenses Method subtracts certain allowed expenses from your gross income to determine your disposable income. These expenses include basic living expenses such as housing, food, transportation, healthcare, taxes, and other necessary costs. The Means Test Method is a more comprehensive approach to calculating disposable income. This method is based on the median income of the state and takes into account your income, expenses, assets, and liabilities. It is used to determine if you can afford to make payments under a Chapter 13 plan. No matter which method is used, the calculation of your disposable income will determine the amount of money you can pay towards creditors in a Chapter 13 repayment plan.