Wednesday, June 12, 2024
The current debt limits to qualify for relief under Chapter 11, Subchapter V ($7,500,000) and Chapter 13 ($2,750,000) sunset on June 21, 2024. Absent action by Congress, the debt limits for Subchapter V (currently $7,500,000) and Chapter 13 (currently $2,750,000 for secured and unsecured debt) will revert to the amounts in effect in March of 2020. The Subchapter V debt limit will drop to $3,024,725. The limit for Chapter 13 will revert to a two-part test that limits eligibility to a maximum of $465,275 for unsecured debt and $1,395,875 for secured debt.