Find out how much debt you're currently allowed to have in a Chapter 13 case.
A Chapter 13 bankruptcy helps people with regular income fix debt problems by paying their disposable income into a Chapter 13 repayment plan for three to five years. A filer who meets all qualifications will be able to wipe out (discharge) some types of debt at the end of the repayment plan, such as credit card balances, utility bills, personal loans, and medical accounts. Learn more about debts discharged at the end of a Chapter 13 case.
However, filers can have only so much debt. The debt limitations for cases filed between April 1, 2022, and March 31, 2025, are:
- $1,395,875 of secured debt, and
- $465,275 of unsecured debt.
A filer whose debt exceeds the limitation amounts must file an individual Chapter 11 case instead. If you're a small business owner, learn about the differences between Chapters 11 and 13.
Most people avoid filing for Chapter 11 bankruptcy because it is far costlier. If your obligations exceed the Chapter 13 debt limitations, consider the tips in Strategies to Meet the Chapter 13 Bankruptcy Debt Limits.
Updated April 22, 2022
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