Chapter 13 Debt Limits as of April 1, 2013 (also applies to 2014 bankruptcy filings)

Click here to see the current Chapter 13 Debt Limits effective April 1, 2016 and valid through 2019.

The Bankruptcy Code section 109(e) sets certain unsecured and secured debts limits for individuals filing Chapter 13 bankruptcy. As of April 1, 2013 and for all of 2014 and 2015, the Chapter 13 debt limits are $383,175 (unsecured debt limit) and $1,149,525 (secured debt limit). These are the chapter 13 debt limits that will continue to apply until 2016.

The secured debt limit of $1,149,525 includes the total of all debt that is secured by collateral, real property or personal property owned by the debtor such as vehicle loans, equipment loans (but not leases), tax liens and mortgages secured by real estate including both residential homestead mortgages as well as mortgages on rental or commercial properties, if any.

The unsecured debt limit of $383,175 includes the total of all amounts owed on credit cards, judgments and other unsecured consumer debts, non-liened taxes and unsecured disputed debts in most cases. This debt limit applies per debtor in a joint chapter 13 bankruptcy filing.

Any individual that is employed or self-employed is eligible for Chapter 13 bankruptcy relief so long as the individual’s unsecured debts total less than $383,175 and secured debts total less than $1,149,525. These statutory debt limits are adjusted periodically every three years according to the consumer price index and the next debt limit adjustment will be in 2016.

Individuals who exceed the Chapter 13 debt limits still have the option to file under Chapter 7 or Chapter 11 for individuals.

Wartchow Law Office advises clients on which form of bankruptcy they qualify for and whether Chapter 7 or Chapter 13 fits their needs best.  Contact for a free consultation and more information on options available under Chapter 13 bankruptcy.

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