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Debt Limits Increase for Chapter 12 and 13 Bankruptcy on April 1, 2022

by | Apr 1, 2022 | Bankruptcy, Bankruptcy, Debt, Debt

By: Jamie L. Harris

Per Bankruptcy Code section 104, the dollar amounts in the Bankruptcy Code are adjusted every three years to account for inflation. The next increase will take effect April 1, 2022 and include increases for the debt limits to chapter 12 and chapter 13 bankruptcy cases. Given recent inflation, these increases are larger than usual. As of April 1, 2022, chapter 13 bankruptcy cases will be permitted for individuals with unsecured debts of no more than $465,275 and secured debts of no more than $1,395,875. The unsecured debt cap increased from $419,275 and the secured debt cap has increased from $1,257,850.  Effective April 1, 2022, a family farmer may file for chapter 12 bankruptcy with aggregate debts of less than $11,097,350. The previous chapter 12 bankruptcy debt cap was $10,000,000. With these changes, more individuals will now be eligible to seek relief under chapter 12 and chapter 13 bankruptcy.

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DelCotto Law Group is Kentucky’s asset preservation and business restructuring law firm known for its commitment to the lifetime success of its clients. With offices located in Lexington, Louisville and Danville, DLG serves Kentuckians with complicated financial matters, especially in the areas of bankruptcy and complex litigation. For more information please call (859) 231-5800, email [email protected] or reach us on our contact page.

 

 

 

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