Chapter 13 Debt Limits

number-38438_1280Chapter 13 bankruptcy has special eligibility requirements.

First, it is available only to individuals.  Corporations or LLC’s can’t reorganize under Chapter 13.

Second, the filer must have regular income in excess of their current living expenses.

Third, the filer’s debts must total less than the caps for both secured and unsecured debt.

The debt limits are divided between unsecured debts and secured debts.

Secured debt cap            $1,149,525

Unsecured debt cap           $383,175

If your debts exceed either cap, you can’t file Chapter 13.

The debt limits are adjusted every three years in April.  The next adjustment is scheduled for April, 2016.

Read more about Chapter 13

Why file 13

How Chapter 13 works

Chapter 13 as a tax tool

Debt management or Chapter 13

Image used under Creative Commons license courtesy of Pixabay.

About the Author
 
 
Northern California bankruptcy lawyer Cathy is a 30+ year veteran of bankruptcy practice in the Silicon Valley. She is know for energetic representation of clients and her command of bankruptcy law.