2019 Changes to Chapter 13 Bankruptcy Amounts

Some figures used in a Chapter 13 case will change on April 1, 2019.

Every three years, the figures found in the bankruptcy code are subject to change. Some of the upcoming changes will affect a Chapter 13 debtor’s filing eligibility and the amount paid under the Chapter 13 plan.

  • Chapter 13 debt limits. A filer can have a limited amount of debt in a Chapter 13 case. A filer whose debt exceeds these limits must use Chapter 11 for reorganization. On April 1, 2019, the limits of $394,725 for unsecured debt and $1,184,200 for secured debt will increase to $419,275 for unsecured debt and $1,257,850 for secured debt. (11 U.S.C. 109(e)) You can learn more in What Are Chapter 13 Bankruptcy Debt Limitations?

  • Household member multiplier. This change affects the monthly repayment plan. Chapter 13 filers must pay creditors the greater of either their disposable income or the value of their nonexempt One of the factors involved in calculating disposable income is the filer’s monthly median income. Each state’s monthly median family income chart includes figures for families with up to four members. A family with more than four members can add a set amount for each additional family member. That amount will increase from $700 per person to $750 per person. (11 U.S.C. §§ 1322(d);(1325(b)(3),(4)) You’ll find more information in Your Obligations Under a Chapter 13 Bankruptcy Plan.

All filers must use the new amounts in Chapter 13 bankruptcy cases filed on after April 1, 2019.

Effective date: April 1, 2019