Effective June 21, 2022, Congress has increased the Chapter 13 debt limit to 2.75 million dollars (combined secured and unsecured debt). The most recent limits prior to this change were $1,395,875 for secured debt (e.g. mortgage, vehicle loan) and $465,275 for unsecured debt (e.g. personal loans, credit card debt). The new debt limit will be in effect for at least two years, after which it will sunset unless extended.

Most potential Chapter 13 bankruptcy filers are well under even the prior debt limits, especially in Western New York. However, if you have been told previously that you did not qualify to file a Chapter 13 bankruptcy due to your total amount of debt, this increase in the debt limit may allow you to file after all.

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