Subchapter V and Chapter 13 Debt Thresholds to Sunset by June 21, 2024 Unless Congress Acts
Tuesday, June 18, 2024
Subchapter V and Chapter 13 Debt Thresholds to Sunset by June 21, 2024 Unless Congress Acts
Unless Congress acts, the current debt thresholds to qualify for Subchapter V ($7,500,000) and Chapter 13 ($2,750,000) relief will sunset on June 21, 2024.
Absent action by Congress, the debt limits for Subchapter V and Chapter 13 will revert to the amounts in effect in March of 2020. The Subchapter V debt limit will drop to $3,024,725. 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.