Chapter 13 Debt Limits to Change

Chapter 13 debt limits are set by the federal Bankruptcy Code. Congress requires these limits for Chapter 13 Bankruptcy cases to be adjusted (usually upward) every three years based on the Consumer Price Index. The current figures were established in 2013, and the next Chapter 13 debt limit adjustment will occur on April 1, 2016.

The current jurisdictional limit for Chapter 13 is $1,149,000 in secured debt. This includes the total of all debt that is secured by personal and real property owned by the debtor including mortgages secured by real estate (i.e., residential homestead mortgages as well as mortgages on rental or commercial properties, if any) and other collateralized debts such as vehicle loans, equipment loans, etc. The secured limit may also include tax liens.

The unsecured debt limit is $383,175. This includes the total of all amounts owed on unsecured lines of credit, credit cards, medical debts, other consumer debts, some taxes owed, and even disputed debts in most cases. This unsecured debt limit is calculated per person in the event that a married couple files a joint Chapter 13 bankruptcy case, but your spouse need not join you in a Chapter 13 filing.

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