New Chapter 11 Bankruptcy Law
WHAT IF I AM OVER THE DEBT LIMIT IN ORDER TO FILE FOR A CHAPTER 13 BANKRUPTCY?
A Chapter 13 Bankruptcy allows individuals to pay all or a portion of their secured and unsecured debts through a U.S. Trustee-approved plan, totaling 3-5 years. After the payment plan is finished, the debtor receives a discharge of all remaining debt that was part of the plan.
As of 2019, the debt limit for an individual to file for a Chapter 13 is $419,275.00 for secured debts and $1,257,850 for secured debts.
What Happens if My Debt Exceeds the Current Limit?
If your debts exceed the current limits, then you may have the option of filing a Chapter 11 bankruptcy under a newly created law in October of 2019. This new law allows a debtor to be treated as a small business. The total debt to be repaid must not exceed $2.75 million. This is a 3-5 year repayment plan, similar to a Chapter 13 repayment plan. Speak with bankruptcy attorney Matthew Cherney to see if this new subchapter of Chapter 11 bankruptcy would apply in your situation.