What are the Chapter 13 Bankruptcy Debt Limits as of 4/1/2025? - Current

$526,700 for unsecured debt
$1,580,125 secured debts

Note – 2-year extension was not approved and adversely affected debtors – Too bad it could not gain approval to keep the prior debt limits.

A bill was pending in the Senate to extend the prior debt limits law for an additional 2 years. S-4150 was read twice in the Senate but not approved. That resulted in the debt limits you see above as of 4/1/2025

What were the Chapter 13 Bankruptcy Debt Limits between 6/21/22 through 6/21/24?

$2,750,00 – Combined Secured and Unsecured.
Why was this better than current debt limits? There were no limitations between secured and unsecured – only the total mattered.

Below is additional information on why the prior Chapter 13 Bankruptcy Debt Limits were better for the Debtor.

Chapter 13 Debt Limits during 2022 through 6/21/2024.

Biden signed the Bankruptcy Threshold Adjustment and Technical Correction Act – Law 117-151.
This new law increased the Chapter 13 Bankruptcy Debt Limit to $2.75 million (I emphasize that only individuals, not businesses, can file Chapter 13).
Did not distinguish categories of debts, as it allows a single total of all debts.
Debt limits are not specific categories of whether the debt is secured or unsecured.

In other words, you could have $2.1 million in secured debt and $649,000 in unsecured debt and qualify for Chapter 13 bankruptcy, In the past and currently, you cannot.

Debtors could have avoided filing a Chapter 11 Bankruptcy if they wanted to reorganize and keep their assets.

These debt threshold limits benefited many debtors who exceeded the old debt limits, for example:

If Debtors:

Own several investment properties
Personally guaranteed a large business loan in addition to their other debts.

This new Law had a significant advantage for individuals with high debt and who wanted to keep their assets. (This enabled help with home Foreclosure).

If you are considering filing Chapter 13 Bankruptcy, I will meet you for a free in-person Bankruptcy consultation. We will discuss the current Chapter 13 Debt Limits for your specific financial situation.

Call me today: Ralph A. Ferro, Jr., Esq. (201) 446-5904 – NJ Bankruptcy Lawyer.

Please read my client reviews – I want to help you with Bankruptcy Protection.

Struggling with Debts?

If you are wondering how to get out of your overwhelming debts, or you know that you cannot keep up, try answering the following questions:

Do you need advice on how to pay off the debts you struggle with each month?
Are you considering filing for bankruptcy in New Jersey and are unsure what is best for you?
Do you use credit cards for basic expenses like food, utilities, and rent?
Are you withdrawing or thinking of withdrawing from your retirement account? – Do Not – Call me first.
Has a creditor advised you that your vehicle will be repossessed?
Are you behind in your mortgage payments?
Is there a foreclosure pending on your home?
Are you constantly receiving telephone calls and letters from creditors and debt collectors?
Have you taken out payday loans and are unable to repay them due to high interest rates?
After paying the required living expenses, do you have any money left over?
Are you getting behind in your property tax payments?
Is there a tax sale scheduled for your home?
Are you behind in HOA fees?
How does the Chapter 13 Debt Limits affect your filing for bankruptcy?
Who qualifies for a Chapter 13 Bankruptcy?
Can a business file for Chapter 13 Bankruptcy? No

If you answered YES to any of these questions, Chapter 7 Bankruptcy or Chapter 13 Bankruptcy can help you. When you meet with Mr. Ferro, he will let you know if bankruptcy is best for you and which bankruptcy is right for your particular situation.

Call Ralph A. Ferro, Jr., Esq. for Bankruptcy Help Today: (201) 446-5904

Our law firm provides a free in-person bankruptcy consultation.
We hope to have the opportunity to meet with you and help you through your current situation. I will help you with a plan to get out of debt.

I am 1 of 4 NJ Bankruptcy Lawyers who are Board Certified. Board Certification ensures you are being represented by an expert lawyer in NJ Bankruptcy law.