To be eligible for Chapter 13 bankruptcy, individuals must prove they have less than $2,750,000 in total debt, which includes debt secured by collateral (such as a home mortgage or auto loan) and unsecured debt (such as debt from credit cards, medical bills, and personal loans). These numbers apply to all Chapter 13 cases filed between April 1, 2022, and March 31, 2025.
While $2,750,000 may seem like a high bar to meet, an individual, family, or proprietor
The debt caps are periodically adjusted based on the Consumer Price Index (CPI). The current amounts are effective as of April 1, 2022, and are scheduled for revision on April 1, 2025.
Some individuals may not be eligible to file for Chapter 13 because of the associated debt limit – know all your options.