On April 1, 2010, the debt limits for Chapter 13 Bankruptcy automatically increase to $360,475 unsecured debt and $1,081,400 secured debt. If you owe more undisputed, non-contingent debt in either category, under Bankruptcy Code §109(e) you do not qualify to file Chapter 13 bankruptcy. Congress limited access to Chapter 13 bankruptcy to individual debtors with debts less than certain specified amounts.
Although the debt limits for Chapter 13 bankruptcy were set by Congress, these limits are adjusted by the amount of change in the Consumer Price Index for All Urban Consumers in the manner set out in 11 USC §104(a), a part of the bankruptcy code. The adjustment occurs every three years on April 1st and is based on the amount of change that has occurred over the previous three years ending December 31 the year before the adjustment. Dollar amounts are rounded to the nearest $25 and the adjustment applies to other limits set forth in the bankruptcy code.
The most recent changes in bankruptcy code dollar limits are listed in the federal register. These changes apply to many different dollar limits set forth in Chapter 7, Chapter 11, Chapter 12 and Chapter 13 Bankruptcy Cases.
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