Does the applicable commitment period mean a case lasts that long?

Not necessarily. The period is the minimum span the projected disposable income test measures under 11 U.S.C. § 1325(b), not a fixed term for every case. Under 11 U.S.C. § 1325(b)(4) it can be shorter when the plan pays all allowed unsecured claims in full, and a confirmed plan can be modified afterwards under 11 U.S.C. § 1329. How it works out depends on the specific figures in a case.

What decides whether the period is three years or five?

The comparison between current monthly income, defined at 11 U.S.C. § 101(10A), and the median income for a household of the same size in the same state. Official Form 122C-1 is where that comparison is reported and the commitment period is calculated. Because the median tables differ by state and household size, we do not publish one national figure here — check the tables that apply to the state involved.

Does an applicable commitment period exist in other chapters?

The term as described here belongs to Chapter 13 and 11 U.S.C. § 1325(b). Chapter 7 has no repayment plan, so nothing of this kind applies. Chapter 12 has its own confirmation rules: 11 U.S.C. § 1225(b) refers to a three-year period or such longer period as the court may approve under 11 U.S.C. § 1222(c). Do not read a Chapter 13 rule as the general one.

Glossary

Applicable Commitment Period in Chapter 13

The applicable commitment period is the minimum time a Chapter 13 debtor's projected disposable income must go toward plan payments — three years below the state median, five years at or above it. Under 11 U.S.C. § 1325(b) it applies when the trustee or an allowed unsecured creditor objects to confirmation, and can be shorter only if the plan pays all allowed unsecured claims in full.

Key points

It is a Chapter 13 term about time, not about the dollar amount of a plan payment.
Which period applies turns on how current monthly income compares with the median for the same household size in the same state.
It has no unconditional minimum: 11 U.S.C. § 1325(b)(4) allows a shorter period when all allowed unsecured claims are paid in full.
The projected disposable income test applies when the trustee or an allowed unsecured creditor objects to confirmation.
Median figures differ by state and household size, so there is no single national number to rely on.

If you have just seen "applicable commitment period" on a form or in a court notice, it is a Chapter 13 term and it is about time rather than money. It sets the minimum span the law measures when deciding whether a repayment plan commits enough income to unsecured creditors. Here is what it means, why it matters, and where people misread it.

What does "applicable commitment period" mean?

The applicable commitment period is a measuring stick, not a payment amount. Under 11 U.S.C. § 1325(b)(1)(B), a Chapter 13 plan can be confirmed over an objection if it commits all of the debtor's projected disposable income received during the applicable commitment period to payments under the plan. The period itself is three years or five years, and which one applies turns on how the debtor's current monthly income compares with the median income for a household of the same size in the same state. Current monthly income is defined at 11 U.S.C. § 101(10A), and it is not income from every source: § 101(10A)(B) excludes benefits received under the Social Security Act and certain payments to victims of war crimes, crimes against humanity, and terrorism. The period also has no unconditional floor, because 11 U.S.C. § 1325(b)(4) allows a shorter one when the plan pays all allowed unsecured claims in full.

How the period is set under 11 U.S.C. § 1325(b)
Current monthly income compared with the state median	Applicable commitment period
Below the median	Three years
At or above the median	Five years
Plan pays all allowed unsecured claims in full	May be shorter — 11 U.S.C. § 1325(b)(4)

Why does it matter in a bankruptcy case?

It sets how long a plan has to run to be confirmed over an objection. Under 11 U.S.C. § 1325(b)(1), the projected disposable income test applies when the trustee or the holder of an allowed unsecured claim objects to confirmation; absent an objection, the court is not running that calculation on its own. When an objection is made, the period decides how many months of disposable income the plan has to capture, which shapes both the monthly payment and what unsecured creditors receive. It also limits later changes. Under 11 U.S.C. § 1329(c), a plan modified after confirmation may not provide for payments over a period expiring after the applicable commitment period, measured from the date the first payment under the original confirmed plan was due — unless the court, for cause, approves a longer period, and in no event beyond five years after that date.

How is it worked out in practice?

In practice it is computed on a form rather than argued from scratch. Official Form 122C-1 is titled the Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period, and official court instructions describe it as the document that reports current monthly income and determines whether that income is at or below the median for households of the same size in the same state (Bankr. S.D. Iowa official guidance — Instructions - Bankruptcy Forms for Individuals). Those instructions add that if the income figure is equal to or less than the median, the second form is not required; if it is higher, Official Form 122C-2 follows and calculates disposable income. The median tables are published data that are updated periodically and differ by state and household size, so a figure that is right in one state is wrong in another. Look up the numbers for the state where a case would be filed.

What do people get wrong about it?

Three mistakes come up repeatedly. The first is treating the period as an unconditional minimum: 11 U.S.C. § 1325(b)(4) lets it be shorter when the plan pays all allowed unsecured claims in full, so a plan paying everyone in full is not held open for the sake of the calendar. The second is confusing the commitment period with the plan's actual length. The period is the minimum span the projected disposable income test measures, while a confirmed plan may later be modified under 11 U.S.C. § 1329 within the limits that section sets. The third is assuming that landing at or above the median captures every dollar of income. The test measures projected disposable income rather than gross pay, and it comes into play only if the trustee or an allowed unsecured creditor objects to confirmation.

Frequently asked questions

Does the applicable commitment period mean a case lasts that long?: Not necessarily. The period is the minimum span the projected disposable income test measures under 11 U.S.C. § 1325(b), not a fixed term for every case. Under 11 U.S.C. § 1325(b)(4) it can be shorter when the plan pays all allowed unsecured claims in full, and a confirmed plan can be modified afterwards under 11 U.S.C. § 1329. How it works out depends on the specific figures in a case.
What decides whether the period is three years or five?: The comparison between current monthly income, defined at 11 U.S.C. § 101(10A), and the median income for a household of the same size in the same state. Official Form 122C-1 is where that comparison is reported and the commitment period is calculated. Because the median tables differ by state and household size, we do not publish one national figure here — check the tables that apply to the state involved.
Does an applicable commitment period exist in other chapters?: The term as described here belongs to Chapter 13 and 11 U.S.C. § 1325(b). Chapter 7 has no repayment plan, so nothing of this kind applies. Chapter 12 has its own confirmation rules: 11 U.S.C. § 1225(b) refers to a three-year period or such longer period as the court may approve under 11 U.S.C. § 1222(c). Do not read a Chapter 13 rule as the general one.

Sources

11 U.S.C. § 1325 — Confirmation of plan (Chapter 13) · official source
11 U.S.C. § 1329 — Modification of plan after confirmation (Chapter 13) · official source
11 U.S.C. § 101 — Definitions · official source
11 U.S.C. § 1225 — Confirmation of plan (Chapter 12)
11 U.S.C. § 1222 — Contents of plan (Chapter 12)
Bankr. S.D. Iowa official guidance — Instructions - Bankruptcy Forms for Individuals

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Sources verified July 28, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.