6/11/2024
It is unlikely Congress will pass legislation to preserve the existing debt limits for Subchapter V and Chapter 13 debtors before they sunset on June 21, 2024.
Absent a legislative fix, the limits will revert to the amounts in effect in March 2020, subject to adjustment for inflation. The Subchapter V debt limit will drop from $7,500,000 to $3,024,725,and the Chapter 13 threshold of $2,750,000 for both secured and unsecured debt will revert to a two-part test that limits eligibility to a maximum of $465,275 for unsecured debt and $1,395,625 for secured debt. If you have a case that won’t meet the eligibility requirements after June 21, 2024, you may want to make sure you get proper counseling from a competent bankruptcy attorney prior to the sunset date.
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