On April 1, 2010, the debt limits in Chapter 13 will upwardly adjust. Sometimes a bar to Chapter 13, these new debt limits may make filing Chapter 13 now possible where the same debtor may have had to file an individual Chapter 11 cases.

Every three years (11 U.S.C. §104), the Bankruptcy Code increases the debt limits in Chapter 13 (11 U.S.C. § 109(e)) in an attempt in account for inflation, among other things. The increase is tied to the Consumer Price Index. 

The new debt limits will be $1,081,500.00 for secured debts and $360,525.00 for unsecured debt. This increase may open the door to Chapter 13 for debtor's whose liabilities exceed either one or both of the limits. The increase represents about a 7% increase. 

Previous Chapter 13 Debt Limits

           Post April 1, 2010  Chapter 13 Debt Limits
$336,900.00 unsecured            $360,525.00 unsecured
$1,010,650.00 secured            $1,081,500.00 secured