In Chapter 13, there are two methods by which the amount to be paid to unsecured creditors is determined. First, unsecured creditors must be paid at least as much as they would have been paid if the debtor’s assets had been liquidated under Chapter 7. This is known as the best interests of creditors test. For debtors with little or no non-exempt assets, the best interests of creditors test will often equal zero.

The second method is what is known as the disposable income test. Under this test, all of the debtor’s projected disposable income for a three or five-year period must be committed to paying unsecured creditors. "Disposable income" has a specific meaning in bankruptcy, as will be seen below. 

In essence, this means that the plan must first satisfy the best interests of creditors test and then must satisfy the disposable income test.