The plan need not pay unsecured claims in full as long it provides that the debtor will pay all projected "disposable income" over an "applicable commitment period," and as long as unsecured creditors receive at least as much under the plan as they would receive if the debtor's assets were liquidated under chapter 7. In chapter 13, "disposable income" is income (other than child support payments received by the debtor) less amounts reasonably necessary for the maintenance or support of the debtor or dependents and less charitable contributions up to 15% of the debtor's gross income.

If the debtor operates a business, the definition of disposable income excludes those amounts which are necessary for ordinary operating expenses. The "applicable commitment period" depends on the debtor's current monthly income.

The applicable commitment period must be three years if current monthly income is less than the state median for a family of the same size—and five years if the current monthly income is greater than a family of the same size. The plan may be less than the applicable commitment period (three or five years) only if unsecured debt is paid in full over a shorter period.

In North Carolina, Chapter 13 bankruptcy allows debtors to reorganize their debts and pay them off over a period of time. Under this chapter, a debtor's repayment plan does not have to fully satisfy unsecured claims as long as the plan commits all of the debtor's projected 'disposable income' to the repayment plan over an 'applicable commitment period.' Disposable income is calculated as the debtor's income, excluding child support payments, minus necessary expenses for maintenance or support of the debtor and dependents, and charitable contributions up to 15% of the debtor's gross income. For business operators, disposable income does not include funds needed for ordinary business expenses. The length of the applicable commitment period is determined by the debtor's current monthly income relative to the state median income for a family of the same size: three years if it is less, and five years if it is more. However, the plan can be shorter than the applicable commitment period if the unsecured debt is paid in full in less time.