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 South Carolina, as in all states, Chapter 13 bankruptcy allows debtors to reorganize their debts and pay them off over a set period. Under Chapter 13, a debtor's repayment plan does not have to fully satisfy unsecured claims as long as it meets certain conditions. The plan must commit all of the debtor's projected 'disposable income' to the repayment plan over the 'applicable commitment period,' which is determined by the debtor's income relative to the state median. Disposable income is calculated by subtracting necessary expenses for the maintenance or support of the debtor and their dependents, as well as allowable charitable contributions, from the debtor's income. If the debtor owns a business, the disposable income calculation excludes necessary business operating expenses. The applicable commitment period is three years for those earning less than the state median for a family of the same size, and five years for those earning more. However, the plan period can be shorter than three or five years if the unsecured debt is paid in full in less time.