Under the U.S. Bankruptcy Code, any person who files bankruptcy will be
required to have their financial situation evaluated in order to determine
if they are eligible to file Chapter 7 or Chapter 13 bankruptcy. As part
of this evaluation, the bankruptcy court will look at a consumer's
total debt, and will generally not allow consumers to file Chapter 13
if their debt exceeds a certain limit.
Chapter 13 debt limits set the bar for the highest amount of secured and
unsecured debts a consumer is allowed to have and still file under Chapter
13. This amount is usually adjusted every three years. With the New Year
now upon us, many consumers have questions about whether Chapter 13 debt
limits have changed. The answer is that they have not.
For the entire calendar year of 2015, Chapter 13 debt limits will be the
same as the 2014 limits. The Chapter 13 debt limits for 2015, which will
remain in effect until April 1, 2016, are as follows:
Unsecured debt limit - $383,175. Unsecured debt may include debts for things such as credit
cards, medical debts, utility bills, unsecured lines of credit, and other
certain consumer debt.
Secured debt limit - $1,149,525. Secured debts are any debt backed by collateral, including
a mortgage or vehicle loans.
Although there are methods to meet the Chapter 13 debt limits, consumers
whose debts surpass these limits may still be able to file Chapter 7 bankruptcy
or, in some cases, Chapter 11. At Wadhwani & Shanfeld, our bankruptcy
attorneys can review your current financial situation in order to help
you understand whether you meet the limits and what the best approach
for debt relief may be. We can then assist you step by step with navigating
the bankruptcy process.
If you have questions about Chapter 13 debt limits, your case, and how
our legal team can help you,
contact Wadhwani & Shanfeld today for a FREE and confidential consultation. We serve clients throughout
Los Angeles and the surrounding communities of Southern California.