More people will be able to get help for their debt problems on April 1, 2010, when the chapter 13 debt limits increase about seven per cent.
$360,475 of unsecured debt
$1,081,400 of secured debt
These numbers are the caps on the amount of debt an individual may have and be eligible for chapter 13 bankruptcy. The ceilings apply to liquidated and noncontingent debts. Unliquidated and contigent debts are not counted in these limits. If your debts exceed these figures, you are ineligible to be a chapter 13 debtor. 11 U.S.C. §109(e).
The debt is counted as of the day the bankruptcy is filed. Debts backed by collateral are split into the secured portion for the value of the collateral and the unsecured portion for the rest of the debt.
The chapter 13 debt caps adjust every three years to reflect changes in the economy based upon the Consumer Price Index for All Urban Consumers, published by the Department of Labor. 11 U.S.C. §104(a).
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